GfK Growth Continues Unabated

The GfK Group increased total revenues by 13.4% from Euro 223.9 million to Euro 253.8 million in the first six months of the year, confirming its target growth of 15% to Euro 550 million, for the year as a whole. At the same time, GfK has topped up its minority stake of 49% in the Swiss Telecontrol Group to a 100% stake.

Since 1983, the Telecontrol Group has been developing and producing electronic measuring instruments which are used to determine TV ratings on a second-by-second basis. Telecontrol measuring instruments are currently used to measure TV ratings in around 18,000 households in eight countries, including Switzerland, Germany, Austria, France and Spain.

In the mid 1990s, Telecontrol began developing equipment to measure radio consumption. This technology, integrated into a wristwatch, has been used in Switzerland since the beginning of the year to measure consumption of individual radio programmes electronically. Radiocontrol is the first system in worldwide use for the electronic recording of radio consumption. In addition to producing the meters and marketing of measuring equipment, Telecontrol also provides services relating to the setting up and operating of TV panels. In 2000, the group achieved a total revenue of almost Euro 12 million and employed 23 people. According to Gerhard Kirschner, the GfK Board member responsible for the Media division, "The acquisition of the Telecontrol Group allows the GfK Group to complete its value added chain in the important ongoing TV and radio consumption measurement segment. From meters to analysis software, GfK is now in a position to offer its clients all the components of a measuring system under one roof."

This latest acquisition means that since the beginning of the year, GfK has carried through 11 company takeovers and increases in existing shareholdings.

All four business divisions made a contribution to GfK's positive first half results. Growth in the Consumer Tracking division was in line with expectations in the first half of the year. The Non-Food Tracking division saw a marked rise in total performance compared with the first quarter of 2001 and consequently, once again made a significant profit contribution.

In terms of performance by region, GfK achieved a satisfactory rise in total performance of 6.5% in Germany, a rate slightly above that for the first quarter of 2001. Growth in Northern Europe was particularly pleasing. The English company, Martin Hamblin, acquired in May, provided significant impetus for growth in this region. Custom Research, the GfK subsidiary in the USA, closed the revenue gap of the first quarter of 2001 as anticipated, and achieved a considerable increase in total performance despite the generally slow economic growth in the USA.

GfK anticipates that the group's organic growth for the year as a whole will outstrip that of the total sector. The company also intends to generate additional growth of up to Euro 40 million by means of acquisitions already made as well as further takeovers.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.