VNU Corporate Strategy

Marketing, media and research giant VNU has just completed two in-depth, one-day presentations in both London and New York.

Highlighting the group's new marketing and media information strategy and operational development, the events were specifically targetted at the international financial community. The events detailed how VNU has completed its strategic transformation to focus on branded, 'must-have' professional information services. These are the areas the company believes will offer attractive growth and margin potential for the year ahead.

VNU executives also outlined the group's financial performance for 2001. On a pro forma basis, VNU generated about 70% of revenues and about 55% of total operating income. This activity was split into two separate groups: VNU Marketing Information - spearheaded by ACNielsen, and VNU Media Measurement & Information - spearheaded by Nielsen Media Research.

In line with previous indications for the period 2002-2004, the group reported that it expects its annual revenue growth in constant currencies to run at 5-7% for Marketing Information, and at least 8% annually at Media Measurement & Information.

Looking ahead to 2002, VNU repeated its statement from the General Meeting of Shareholders. 'It is expected that the positive development in operating income of the Marketing & Media Information group will compensate to a great extent for the development of operating income of the Business Information group as well as for the elimination of operating income of both the Consumer Information and Educational Information groups which were sold in 2001. Net interest expense will decline substantially in 2002 due to a lower level of average outstanding loans. Together, these developments provide a positive view of VNU's prospects.'

The predictions concluded, 'In 2002, total VNU investments will reach a similar high level as in 2001, specifically at Nielsen Media Research and ACNielsen. VNU expects that after 2002 this level will gradually decline.'

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

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