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UK ad company WPP first-half profit up 14 percent

UK ad company WPP first-half profit up 14 percent

Britain's WPP Group PLC, the world's second-largest advertising company, said Friday its first-half profit climbed 14 percent on the back of strong sales in emerging markets.
Net profit for the six months to June 30 was 208 million pounds (US$390 million), up from 182 million pounds a year earlier.
Revenue rose to 3.3 billion pounds (US$6.2 billion), from 2.9 billion pounds in the first half of 2007.
The company credited the fast-growing markets of Latin America, Asia Pacific, the Middle East and Eastern Europe as the main reason for its double-digit growth. First-half revenue increased by 17 percent in mainland China, compared with the same period last year, and revenue in India shot up by 26 percent.
WPP said it now relied on fast-developing regions for a quarter of its total revenue. Chief executive Martin Sorrell has made acquisitions in places including Brazil, Russia, India and China.
The company _ which owns Ogilvy & Mather, Young & Rubicam and Hill & Knowlton _ said business activity for the second-half of the year would also be strong, helped by the Beijing Olympics and the U.S. presidential election _ both drivers of advertising.
WPP is in the process of trying to diversify its business away from advertising by acquiring market researcher Taylor Nelson Sofres PLC. The advertiser made a 1.1 billion pound (US$2.1 billion) hostile bid for the researcher on July 9, but Taylor Nelson's management is urging shareholders to reject the offer as too low.
Because the results were broadly in line with market expectations, share price fluctuation was relatively flat in London trading Friday morning, falling 1 percent to 469 pence (US$8.79).


Updated : 2021-05-06 19:57 GMT+08:00