ToLuna Results 'Ahead of Expectations'

Panel and technology services provider ToLuna has released a trading update for the year ended 31 December 2009. Revenue is expected to exceed £49m, slightly ahead of market expectations, with underlying pre-tax profit of at least £7m.

ToLuna's own revenue a year ago was £21.7m, but the new figure reflects the acquisition of the ISS Division of Greenfield Online from Microsoft Corporation, making comparison difficult. The new results include a full year of the original ToLuna business and five and a half months for Greenfield, whose 2009 total was widely expected to tumble in the economic downturn, from $88m effective turnover in 2008, and whose business was slightly loss-making in early 2009. It appears ToLuna has not only returned Greenfield to profit, but has posted combined revenue slightly higher than 2008 for the two, on a like-for-like basis *.

ToLuna says it made rapid progress during 2009, due to strong performance in all territories, with significant progress in North America and Europe. The underlying pre-tax profit of at least £7m (before exceptional integration costs and business combination amortisation) is more than 10% ahead of market expectations.

The integration of Greenfield, acquired in July 2009 for $40m, is said to be proceeding faster than predicted, and the group is generating strong operational cash flow, with net cash at the year-end in excess of £10m.

ToLuna now operates panels in 33 countries: it also runs PanelPortal, DIY survey tool QuickSurveys, Interactive Voice Recognition and mobile survey capabilities, and ad effectiveness measure BrandSpector. The Board says it is confident of continued growth in 2010, and that the firm's technological strength has been reinforced by the Greenfield acquisition. Founder and CEO Frederic-Charles Petit comments: 'We are pleased with our rapid progress in integrating the Greenfield Online / Ciao Surveys team and with our excellent performance against a challenging economic background'.

With 17 offices in Europe, North America and Asia Pacific, ToLuna is online at www.toluna-group.com/en .



* Greenfield's revenue in 5.5 average months in 2008 was (5.5 / 12) x (88m / 1.6) = £25.2m; added to ToLuna's £21.7m gives £46.9m, significantly less than the new figure.