Cheil Worldwide Inc., a marketing services arm of Samsung Group, is expected to post strong earnings this year, led by the much-hyped launch of the Galaxy Note8 by its sister company Samsung Electronics Co. and a likely increase in marketing sales from the 2018 PyeongChang Winter Olympics.

According to advertising industry sources on Sunday, Cheil PengTai, Chinese subsidiary of Cheil Worldwide, has won a new ad order from Pinduoduo, China-based online commerce platform provider. The new ad account is expected to bolster the Korean advertising agency’s revenue that had been on a downward spiral since the first quarter due to China`s retaliatory measures against South Korean companies over Korea’s deployment of U.S missile defense system.

Cheil Worldwide recently reported a consolidated operating profit of 75.6 billion won ($66.5 million) for the first six months of this year, up 14 percent from a year ago, despite a slowdown in revenue from its Chinese business.

The somewhat resilient earnings were mainly led by its solid business in Europe that recorded a 6 percent growth over the same period. The company has fared well in emerging markets with revenues from Latin America and India jumping 37 percent and 29 percent, respectively, thanks to Samsung Electronics’ new Galaxy phone campaigns.

Market analysts expect a bright future for Cheil Worldwide as its major client Samsung Electronics is planning another massive marketing campaign with the launch of its new smartphone Galaxy Note8 scheduled next month. The 2018 Winter Olympics is also anticipated to benefit the company as many companies are expected to kick off their Olympics marketing events later this year.

Cheil Worldwide should gain additional sales momentum from its new business platforms such as online commerce and digital media solution, market analysts also said.

Shares of Cheil Worldwide finished Monday at 19,800 won, up 200 won or 1.02 percent from the previous session.

By Kang Young-woon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]