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Tag: VNU

  • VNU post 5 pc organic revenue growth

    VNU post 5 pc organic revenue growth

    MUMBAI: Global media company VNU, which owns research and measurement agency AC Nielsen has posted results for the first six months of 2004. It reported organic revenue growth of 5 per cent.

    Total revenues, however, decreased by 5 per cent to 1,834 million Euros from 1,939 million Euros in the same period last year as a result of the depreciation in the US dollar.

    At constant currencies, total revenues would have amounted to 1,980 million Euros, an increase of 2 per cent versus the same period last year. Operating income too decreased by four per cent to 317 million Euros from 329 million Euros. At constant currencies, operating income would have amounted to 342 million Euros, an increase of 4 per cent.

    AC Nielsen delivered good growth in each of its regions, adding clients and increasing market share. However, margins are under pressure in Europe as the company is converting clients to the new data factory there.

    AC Nielsen’s emerging markets and Asia Pacific regions also showed good organic growth, despite weak economic conditions in some European countries. In mid-June, AC Nielsen began initial operation of its new European data factory, a harmonised processing platform that gives clients access to information via the Web. The first clients are being converted to the new system in Belgium, France and The Netherlands. However, the lengthy and complex process of transitioning all clients to the new factory will take longer than previously expected.

    Elsewhere, retail measurement services were expanded in India, Russia, China, and Japan to provide better channel and geographic coverage. Revenues were also higher from consumer panel services in Asia as this business continued to expand its offerings and coverage.

    VNU chairman and CEO Rob van den Bergh added, “Importantly, we are seeing double-digit revenue growth in our Advisory Services units, which provide high-value insights and services. These help our clients enhance their targeted marketing efforts and improve their return on investment.

    “In Media Measurement & Information, organic revenue advanced by 7 per cent. This was driven primarily by Nielsen Media Research, which grew its US revenues by 11 per cent. Nielsen remains on track to expand its coverage of the US television marketplace by increasing the size of its national TV ratings sample and rolling out its Local People Meter service, despite the public debate.

    “The MMI group continues to introduce new services that measure audiences for outdoor media, video games, product placements and sports sponsorships – all advertising growth areas.”

    Reported cash earnings of VNU rose in the first half of 2004 to 215 million Euros from 201 million Euros in the same period last year. However, at constant currencies, cash earnings would have been 234 million Euros, an increase of 17 per cent.

    Net earnings decreased by 12 per cent to 91 million Euros from 103 million Euros as a result of the lower US dollar and higher goodwill amortisation charges.

  • New JV for merged ratings service, TAM’s LV Krishnan to head

    New JV for merged ratings service, TAM’s LV Krishnan to head

    Bowing to a long-standing demand from the industry that there should only be one rating system, market research agencies AC Nielsen’s TAM Media Research and ORG MARG’s INTAM today set in motion the process that will see the merger of their operations through a joint venture with a single currency by the middle of next year.

    The transaction is expected to close by the end of this year. The new venture will combine local TV ratings data from TAM Media, a 50-50 joint venture between AC Nielsen and KMR/IMRB, with data from ORG-MARG, a VNU company, in a single service across India. The combined TV ratings service will be one of the world’s largest to use advanced people meter technology, a joint press release states.

    When contacted LV Krishnan, president TAM India, confirmed he would be heading the combined service.

    Speaking to indiantelevision.com, Gautam Mitra, general manager, INTAM, clarified that the two organisations would not be merged. What would happen was that there would be a consolidation of the databases of the two bodies so that a single consolidated rating system would be operating rather than the current two.

    Company officials said a combined service will benefit all clients – broadcasters, agencies and advertisers – because it will provide significant additional coverage of the Indian television market. Coverage will be expanded to all major states in India (15 states versus the current coverage of nine) and virtually all major metropolitan areas, under a plan that will be presented to the industry.

    The new joint venture will also be the leading provider of advertising expenditure information in India, covering more than 90 per cent of the country’s TV and press advertising spending, the release says.

    Responding to worries in the industry that there could actually be a reduction in the total coverage as one system would be discontinued, Gautam Mitra, general manager, INTAM, denied any such decision had been made. He, however, admitted that a major issue that needed sorting out was how to introduce compatibility into two systems that are currently incompatible. INTAM uses picture matching technology for their people meters while TAM uses a frequency system.

    Mitra added that places of coverage in the new dispensation would have to be thought through. When the people meter lists in Mumbai and Chennai were systematically leaked recently, an issue that had caused much heartburn was the selection of samples for the different socioeconomic categories. The charge was that too often there was a mismatch witnessed.

    Queried as to whether this move was a prelude to the merger of the two companies, Krishnan was noncommittal. Official line notwithstanding, it does look distinctly possible that by the middle of next year, there will not only be one rating system, but one company as well.