Organic Option Proves Healthy for GfK

Thwarted in its TNS marriage plans, GfK appears to be enjoying the single life. Revenue for the first nine months of the year rose to EUR 883.8m, representing organic growth of 7.2% (up from 5.5% the previous year); and adjusted operating income up 1.7% to EUR 104.3m. The firm described the results as 'satisfactory' in the current economic climate.

As in the prior quarters, the Retail and Technology sector increased its margin, posing sales growth of 15.9% to EUR 219.1m.

The Media sector saw organic sales growth of 11.7% (prior year 9.9%), and sales increase by a total of 7.1% to EUR 95.8m.

While Custom Research generated organic sales growth of 4.2%, and total sales were up 2.5% to EUR 566.1m, performance in the Healthcare sector varied regionally and results were poor overall.

Growth rates in Germany, Western Europe/Middle East/Africa and Central and Eastern Europe were described as 'pleasing', while those in the US and UK remained 'restrained'. Accordingly, the firm says it will restructure the relevant business units to counter these developments at the beginning of next year.

At the end of October, 95.3% of expected 2008 sales had been recorded in the order book, exceeding the 93.4% level in the prior year.

In addition, the firm has now received the contractually agreed break fee of £10.6m (c.EUR 13m) from TNS.

In a statement, GfK announced plans to exploit opportunities offered by the current financial crisis, by taking advantage of 'attractive potential acquisitions' that will facilitate the expansion of its existing range of products and services.

Assuming performance does not decline in the final quarter of 2008, GfK is predictings organic sales growth in excess of 6.0%, and a margin exceeding 13.0%.

Web site: www.gfk.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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