News notes
Reston, Va.-based comScore Inc. has formally entered into an agreement with the Media Rating Council (MRC) to move forward with an MRC audit of the U.S. Media Metrix online audience measurement service, the next step in gaining MRC accreditation of the comScore Media Metrix panel. The first phase of the audit will cover comScore’s proprietary technology for capturing the Internet behavior of its panelists.
St. Louis research and marketing firm the Avala Marketing Grou p is celebrating the completion of its tenth year in business.
Researcher TNS announced that CSM Media Research (a TNS joint venture with China-based CTR Market Research) will initiate field tests in Beijing of the Arbitron Portable People Meter (PPM) system for radio audience measurement in advance of the 2008 Beijing Olympics. The PPM system is licensed by TNS, and TNS will support the setup and running of the audience measurement test. Preparations are underway for the introduction of a pilot panel in Beijing. A testing methodology will aid understanding of how the PPM performs in Beijing’s media environment. The test with Beijing’s major radio broadcasters is supported by radio media owners as well as CSM Media Research and Arbitron. CSM Media Research will release key findings upon completion.
Acquisitions/transactions
Netherlands-based Jaarbeurs (Holding) BV has reached an agreement in principle with the Nielsen Company to acquire Nielsen’s 50 percent of the shares in VNU Exhibitions Europe. In doing so, Jaarbeurs will become the full owner of the company, which organizes trade shows.
London-based Synovate has acquired Metra Seis, a Spain-based full-service research company. With offices in Madrid and Barcelona, Metra Seis employs 75. Synovate Iberia Managing Director Enrique Domingo will lead the new Spanish business. Metra Seis Managing Director Julio Vidosa will become deputy managing director of Synovate’s operations in Spain.
The GfK Group has acquired two Chinese market research firms, Sino-MR and CMM. The firm also announced separately that it has taken over the contact lens and cleaning product panel service from the Nielsen Company in Japan. Also, Swiss GfK subsidiary IHA-GfK AG has acquired Zurich research firm CFI Trustmark. Dutch GfK subsidiary Intomart GfK has acquired market research firm Daphne Communication Management BV in the Netherlands. And the GfK Group has acquired Satisteme, which specializes in mystery shopping in the French market.
Teaneck, N.J., outsourcing firm Cognizant Technology Solutions Corporation will acquire N.J.-based marketRx Inc., a provider of analytics and related software services to life sciences companies. Cognizant will pay approximately $135 million in cash, which will be funded from current cash reserves.
Livonia, Mich., research firm Market Strategies International (MSI) has merged with Flake-Wilkerson Market Insights of Little Rock, Ark. Flake-Wilkerson will become the communications industry group within Market Strategies International. Principal partners Karen Flake and George Wilkerson will join the executive committee of MSI. Terms were not disclosed.
London media intelligence firm Screen Digest has acquired Adams Media Research (AMR), Carmel, Calif. Exact terms were not specified beyond an undisclosed amount of cash and Screen Digest stock. AMR Founder Tom Adams will continue as its president and join the board of Screen Digest.
Alliances/strategic partnerships
The Nielsen Company, New York, and Google, Mountain View, Calif., have established a multi-year strategic relationship. As a first step, Nielsen will provide demographic data to the Google TV Ads advertising platform. By combining Nielsen demographic data with aggregated set-top box data, Google aims to provide advertisers and agencies with information to help them create better ads for viewers and maximize their advertising spending.
Separately, the Nielsen Company and India-based outsourcing firm Tata Consultancy Services (TCS), announced an agreement in principle for outsourcing a portion of Nielsen’s information technology and operations functions worldwide. Nielsen and TCS are in negotiations on a definitive agreement which they expect to execute in the near future. Under the proposed 10-year agreement, valued at approximately $1.2 billion, TCS will assume responsibility for important IT and operational processes and help Nielsen integrate and centralize multiple systems, technologies and processes on a global scale. TCS also will assume responsibility for certain finance and human resource business processes, which will be executed on platforms built by TCS.
Research firms IMS Health, Norwalk, Conn. and Information Resources, Inc., Chicago, announced a global alliance to provide business intelligence, analytics and consulting services to the consumer health marketplace. The multi-year alliance establishes a view of three market segments: prescription medicines, over-the-counter products and consumer packaged goods.
Association/organization news
The data management group of Bloomington, Minn., information services firm Pearson announced it has been accepted for membership as a full-service research company in the Council of American Survey Research Organizations.
The Advertising Research Foundation (ARF) recently named a new board of directors: Tony Fagan - director of product marketing, Google; Belle Frank - executive vice president, brand planning group director, Young & Rubicam; Felipe Korzenny - professor and director of the Center for Hispanic Marketing Communication, Florida State University; Sarah Patterson - senior vice president, director of account planning and research, Burrell Communications; David Poltrack - chief research officer, CBS Corporation; Randall Rothenberg - chief executive officer, IAB; Susan Wagner - vice president, strategy and insights, Pepsi-Cola North America; Britta Ware - vice president, research solutions, Meredith Corporation; and John Zogby - president and CEO, Zobgy International.
Separately, the ARF announced that Joseph Plummer has given up his full-time duties as ARF chief research officer. Plummer will stay on as editor of the Journal of Advertising Research for a period of at least two years and maintain an office at the ARF.
The Pharmaceutical Market Research Group (PMRG) announced the recipients of its RR Fordyce Award and two newly established awards, the Circle of Excellence and Presidents Award. The 2007 RR Fordyce Award was presented to Brian Cain, executive director, global market research, Schering-Plough Corporation and president of the PMRG. In honor of industry leader Richard “Dick” Fordyce, this award is given each year to a recipient who exemplifies the principles of excellence, innovation and integrity in pharmaceutical market research. The President’s Award was presented to Joel Bradus, partner and managing director, the Concierge Group. The President’s Award honors those within the PMRG community who have demonstrated long-term dedication and commitment to the success of the PMRG organization and who are considered industry role models in market research. The Circle of Excellence Award was given to Jeff Adler, Centrac DC; Debbie Kossman, National Analysts Worldwide; and Bill Little, Delta Marketing Dynamics. The Circle of Excellence award is designed to honor PMRG volunteers who advance the organization through extraordinary efforts and advocate for the organization beyond personal gain. Adler is the director of membership for PMRG. Kossman is the PMRG director of programs. Little has provided strategic insight and direction and has been a long-term PMRG advocate and supporter.
Awards/rankings
Cambridge, Mass., research firm MarketSight has been selected as a finalist in the applied technology category for the 12th Annual MITX Awards. Held annually by the Massachusetts Innovation & Technology Exchange, the MITX Awards recognize excellence in the creation of Web innovations designed, produced or developed in New England.
Herndon, Va., research firm Office Remedies Inc. and its president Kathleen Benson received the Top 100 Minority Business Enterprise Award. A panel of judges chose Benson as an entrepreneur who demonstrated outstanding achievement in four key areas: business development, client satisfaction, professional affiliations and community outreach.
Shugoll Research, Bethesda, Md., was named to the BCA Ten: Best Companies Supporting the Arts in America, sponsored by the Business Committee for the Arts, Inc. (BCA) and Forbes magazine. Recognizing that arts organizations have a need for market research and often do not have the budget for it, Shugoll Research offers substantially discounted and pro bono research. The company also created two programs to introduce middle- and high-school students to the arts - ArtSpeak!, which brings leading Broadway, jazz, classical music, dance and design artists into public schools to discuss their careers, answer questions and perform; and TheaterTrips!, which brings students to the theater, concerts and dance events.
India-based outsourcing firm Dexterity has been selected as a winner in the Deloitte Technology Fast 50 India 2007 Program. This is the second consecutive year that Dexterity has won this award. The Deloitte Technology Fast 50 India 2007 Program, conducted by Deloitte Touche Tohmatsu Asia Pacific, identifies the top 50 fastest-growing technology companies in India based on their percentage revenue growth over the last three financial years.
New accounts/projects
Radio company Cumulus Media Inc. has signed a multi-year agreement for Portable People Meter ratings services from New York-based Arbitron Inc. for 33 stations in eight markets. The markets covered by the agreement are Atlanta, Cincinnati, Dallas-Fort Worth, Houston-Galveston, Indianapolis, Kansas City, Nashville and San Francisco. The agreement provides that Cumulus will subscribe to the PPM ratings as and when the service is introduced in each market. Separately, Radio One Inc. has signed a five-year contract for radio ratings services in 16 markets. The agreement includes Portable People Meter ratings services in 15 top-50 markets and a continuation of the diary-based ratings services in one market. The PPM agreement covers 15 Radio One markets encompassed in Arbitron’s previously announced PPM rollout plan: Atlanta, Baltimore, Cleveland, Cincinnati, Charlotte, Columbus, Dallas, Detroit, Houston, Indianapolis, Los Angeles, Philadelphia, Raleigh, St. Louis and Washington D.C.
Japan-based research firm Interface in Design Inc. has licensed the Confirmit MR platform for all of its online data collection services.
New companies/new divisions/ relocations/expansions
The Dieringer Research Group Inc. has moved to a new 26,000-square-foot office building at 200 Bishops Way, Brookfield, Wis., 53005.
Ortek Data Systems has moved to 7180 S.W. 189th Ave., Beaverton, Ore., 97007-5651.
Mike Page, a former operations director at Synovate, has launched Cognicient, a data analysis company, at 150 East 93rd Street, Suite 10d, New York, N.Y., 10128. Phone 203-687-4889.
Company earnings reports
Omaha, Neb., database company InfoUSA Inc. said its third-quarter profit rose 53 percent, helped by a gain from a lawsuit settlement and the expansion of its marketing research services. The company earned $17 million, or $0.31 per share, up from $11.1 million, or $0.20 per share, in the same period a year earlier. Revenue rose 74 percent to $185 million from $106.4 million. The latest quarter’s results include a one-time gain from a lawsuit settlement that added $9.9 million to revenue and $9.2 million to operating income. InfoUSA said it “significantly expanded” the scope of its marketing research group during the quarter and made several acquisitions. The company said it plans to continue growing through strategic acquisitions in the marketing research sector and elsewhere. The marketing research group added $56.3 million to the quarter’s revenue. The marketing research group is composed of Opinion Research and Macro International, acquired December 4, 2006; Guideline acquired August 20, 2007; and NWC Research acquired July 27, 2007.
For the third quarter of 2007, Arbitron Inc., New York, reported revenue of $96.5 million, an increase of 6.4 percent over revenue of $90.7 million during the third quarter of 2006. Costs and expenses for the third quarter increased by 16.4 percent, from $56.8 million in 2006 to $66.1 million in 2007, due in part to planned expenditures for the rollout of the Portable People Meter (PPM) ratings service in Philadelphia, New York, Nassau-Suffolk, Middlesex-Somerset-Union, Los Angeles, Riverside, Chicago and San Francisco.
Earnings before interest and income tax expense (EBIT) for the quarter were $27.2 million, a decrease of 15.4 percent compared with EBIT of $32.1 million for the third quarter of 2006.
Net income for the quarter was $17.2 million, compared with $20.2 million for the third quarter of 2006. Net income per share for the third quarter of 2007 was $0.58 per share (diluted), compared with $0.69 per share (diluted) during the comparable period last year.
For the nine months ended September 30, 2007, revenue was $267.3 million, an increase of 6.9 percent over revenue of $250.0 million for the same period in 2006.
EBIT decreased 21.7 percent from $73.1 million in the first nine months of 2006 to $57.2 million in 2007. Net income for the period in 2007 decreased 20.2 percent to $36.5 million compared with $45.7 million in 2006. Earnings per share (diluted) for the nine months in 2007 were $1.21, compared with $1.51 per share (diluted) last year.
IMS Health, Norwalk, Conn., announced third-quarter 2007 revenue of $538.8 million, up 12 percent or 8 percent on a constant-dollar basis, compared with revenue of $482.7 million for the third quarter of 2006. Operating income in the third quarter of 2007 was $117.1 million, up 1 percent on both a reported and constant-dollar basis, compared with $115.4 million in the year-earlier period.
Third-quarter 2007 diluted earnings per share on a GAAP basis were $0.29, compared with $0.34 in the prior-year quarter, a 15 percent decline. Earnings per share for the third quarter of 2007 included a tax provision related to a change in the German federal tax rate. When adjusted for this item, and the phasing of tax benefits, tax provisions, and foreign exchange hedge gains and losses, earnings per share on a non-GAAP basis for this year’s third quarter would have been $0.36, unchanged year over year.
Net income on a GAAP basis was $57.1 million, compared with $69.3 million in the year-earlier quarter, down 18 percent. Net income for the third quarter of 2007 included the German tax provision. When adjusted for this item, and the phasing of tax benefits, tax provisions, and foreign exchange hedge gains and losses, net income on a non-GAAP basis for this year’s third quarter would have been $71.6 million, a decline of $1.9 million. BR>For the first nine months of 2007, revenues were $1,586.6 million, up 12 percent or 9 percent constant dollar, compared with revenue of $1,415.1 million for the first nine months of 2006. Operating income for the first nine months of 2007 was $346.3 million, up 9 percent on a reported and constant-dollar basis, compared with $318.5 million in the year-earlier period.
For the first nine months of 2007, diluted earnings per share on a GAAP basis were $1.08, compared with $1.20 in the prior-year period. Earnings per share for the first nine months of 2007 and 2006 included net tax benefits and foreign exchange hedge gains and losses, while the second quarter of 2006 included income and expenses related to the terminated merger with the Nielsen Company (formerly VNU, N.V.). When adjusted for these items, on a non-GAAP basis, earnings per share for the first nine months of 2007 would have grown $0.09 year over year to $1.10.
Net income on a GAAP basis was $216.1 million, compared with $250.0 million in the first nine months of 2006. Net income for the first nine months of 2007 and 2006 included net tax benefits and foreign exchange hedge gains and losses, while the second quarter of 2006 included merger-related income and expenses. Adjusted for these items, on a non-GAAP basis, net income for this year’s first nine months would have grown $11.3 million to $220.9 million.
Norway-based Confirmit reported revenue increased by 82 percent to $8.9 million in the third quarter. Operating results for the third quarter amounted to $833,000, an increase of 50 percent compared to the corresponding quarter of 2006. The strong revenue growth is due to 39 percent organic growth and $2.1 million consolidated revenue from the acquisition of Pulse Train Ltd.