Advertiser says it will reap benefits from Beijing Olympics
London-based advertisers WPP (LSE: WPP; NASDAQ: WPPGY) said on Friday that it expects to realize a benefit from the 2008 Beijing Olympics. The company, which said that its 2006 pre-tax profits were up 14.5 percent to £766.3 million and that it will outperform its sector this year, claims that China is currently its fourth-largest market and that it will likely be its third-largest by the start of the Olympics there. WPP said that it had 15 percent of the advertising market in China currently and that their business in China grew by over 20 percent in 2006.
The annual report from the advertiser also noted that it would likely benefit from more liberal rules on advertising by gambling concerns in the UK. It also said, however, that it will probably incur losses due to recently imposed restrictions on advertisements for junk foods in association with children’s television programming. Ofcom has restricted junk foods advertisements during programs that have an audience of predominantly children.