News notes
Dallas-based research firm e-Rewards announced a nationwide fundraising and awareness campaign that focuses on supporting scholarships for the education of future leaders in market research. Until December 31, 2007, for the first project any customer conducts with e-Rewards, the firm will donate 1 percent of the total revenue from that project to the Marketing Research Association’s Education Endowment Fund. E-Rewards’ donation goal is $50,000. For more information or to participate in the program e-mail ask@e-rewards.com or call 888-203-6245.
Acquisitions/transactions
In the U.K., TNS has acquired ID Magasin, a retail and shopper insight consultancy. Separately, TNS has acquired a 15 percent strategic stake in Eye Square, a Berlin-based usability research company. TNS will promote Eye Square solutions through its network, while Eye Square will support the servicing of TNS clients.
Harris Interactive, Rochester, N.Y., announced that Brazil-based research firm CNP Global has become the newest affiliate member of its network of independent market research companies.
Portland, Ore., research firm Market Decisions Corporation has purchased VuPoint Portland, a focus group facility in northwest Portland. VuPoint was originally owned and operated by RDD Research of Portland, which chose to release the facility as it no longer matched with its business strategy. The facility is located at 220 N.W. 2nd Ave., on the first floor of the Northwest Gas Building.
Akron, Ohio, marketing firm Synergy International Limited Inc. has acquired DecisionPoint Marketing and Research Inc., Fairlawn, Ohio.
Alliances/strategic partnerships
Nationwide Surveys, Corona, Calif., will operate as a U.S. base for Vancouver survey firm Techneos Systems Inc.’s Techneos-To-Go service bureau, which employs a wireless survey process using handheld and tablet computers.
Media management firm Sahara Communications has signed a memorandum of understanding with Washington, D.C.-based research firm Zogby International to collaborate on the development and implementation of research and information-gathering initiatives.
BIGresearch, Columbus, Ohio, has formed a strategic partnership with the Gluskin Townley Group LLC, an Allentown, Pa., retail marketing consultancy, to develop trends reports on consumer purchase intentions and actions for the sporting goods, specialty outdoor and specialty bicycle channels of trade
Awards/rankings
India-based research firm Cross-Tab Marketing Services has been ranked among the Red Herring Asia 200 finalists for excellence in innovation and technology. The 200 finalists were selected by technology media firm Red Herring based on quantitative and qualitative criteria such as financial performance, technology innovation, quality of management, execution of strategy, and integration into their ecosystem. The participants are based in 16 countries/regions including China, India, Japan, Singapore, Korea, Australia and Vietnam.
Reston, Va., research firm comScore Inc. was ranked among Inside Research’s top 25 global market research organizations based on 2006 revenue. With global research revenue of $66.3 million, comScore ranks 21st, up from 23rd in 2005. ComScore’s 2006 growth rate of 31.8 percent compares to average growth of 5.2 percent for the top 25.
Auburn Hills, Mich.-based Gongos Research has been named to the 2007 Inc. 5,000 list of the fastest growing companies in America. With 2006 revenues of $10.7 million, the firm has experienced 25.3 percent revenue growth since 2003, as measured by Inc. magazine’s Inc. 5,000 criteria.
New accounts/projects
French research firm LH2 has purchased a Voxco Command Center system from Montreal-based research software firm Voxco for managing multi- and mixed-mode data collection campaigns. LH2 has also purchased Pronto, Voxco’s predictive dialing solution.
New companies/new divisions/relocations/expansions
20/20 Research, Nashville, Tenn., has moved to a new space in the Glen Echo building in the Green Hills area of Nashville. The new space will house a three-room focus group facility, the firm’s online division, corporate offices and call center.
Canada-based research firm Angus Reid Strategies has opened its first U.S. office, in San Francisco, and tapped Leigh Admirand, senior vice president, to lead it.
Research firm Dallas Focus is now Dallas By Definition. With the name change also comes new ownership of the company. Robin H. McClure now shares equal partnership with Stacy Scott and Al Scott.
Fresno, Calif., research firm Decipher Inc. has opened an office in New York City and tapped Duane Joseph to lead it.
Research firm Global Edge International has opened an office in Kenya to serve its clients in East Africa, taking over a local research outfit, Infield Research, to form Global Edge East Africa. Dominic Kipchirchir has been named the new firm’s client service director.
Indianapolis research firm Herron Associates Inc. expanded its operations to Tampa, Fla., occupying the research facility formerly owned by the Herron Group of Tampa. Herron Associates was founded in Indianapolis in 1958, with operations in Tampa from 1991-1996. This expansion returns the Tampa facility to its original ownership and management.
The European subsidiaries of Rochester, N.Y.-based Harris Interactive in France and Germany have been incorporated into its global brand and now operate under the Harris Interactive name. The affected firms are MediaTransfer Netresearch and Consulting of Hamburg, acquired by Harris Interactive in April 2007, and Novatris of Paris, part of Harris Interactive since 2004.
Waltham, Mass., research firm Invoke Solutions has opened a new office in London and tapped Joanne Manley, director of strategic alliances, Europe, to lead it.
Fairfield, Conn.-based Survey Sampling International has opened its first office in Canada, in the Toronto area at 15 Allstate Parkway in Markham, Ontario. Phone 905-947-4291.
Company earnings reports
Harris Interactive, Rochester, N.Y., announced results for its fourth fiscal quarter and fiscal year ended June 30, 2007. Revenue for the fourth fiscal quarter of 2007, including $1.4 million of revenue from MediaTransfer, acquired in April 2007, was $57.1 million, down 3 percent from the $58.8 million in the same period a year ago. Consolidated organic revenue for the fourth quarter declined 5 percent. U.S. revenue was $41.4 million, down 9 percent from the $45.6 million of revenue reported a year ago. European revenue was $15.7 million, up 19 percent from the $13.2 million of revenue last fiscal year. European organic revenue growth was 8 percent for the fourth fiscal quarter of 2007.
Internet revenue for the quarter was $35.9 million, up 6 percent from the $33.9 million of Internet revenue reported for the same period a year ago. U.S. Internet revenue was $30.3 million, about flat when compared to $30.2 million of Internet revenue reported in Q4FY2006. European Internet revenue, including $1.3 million of Internet revenue from MediaTransfer, was $5.6 million for the quarter, up 54 percent from the $3.7 million of Internet revenue reported for the same period last year. Organic European Internet revenue growth was 18 percent for the quarter.
Operating income for the fourth quarter was $4.2 million, or 7.3 percent of revenue, up 4 percent when compared to operating income of $4.0 million, or 6.8 percent of revenue, for the same period a year ago.
In the first half of 2007, Paris-based Ipsos generated sales of EUR 443.1 million, up 8.7 percent compared to the year-earlier period, despite a negative currency effect of 3.7 percent due mainly to the sharp decline in the dollar against the euro. This growth is mainly due to strong organic growth of 10 percent as well as to the 2.4 percent contribution of acquisitions in Latin America and Turkey. The gross margin rose to 60 percent from 59.6 percent in the year-earlier period. Operating margin grew faster than revenues and gross profit due to tight control over administrative expenses. The operating margin is 8.5 percent of consolidated sales, 50 basis points higher than in the previous half-year period.
At Germany-based GfK Group, sales for the first half of the year rose by 3.6 percent to EUR 553.7 million, with the company recording organic growth of 4.9 percent. Adjusted operating income of EUR 63.5 million was achieved. The margin of adjusted operating income to sales amounted to 11.5 percent (prior year: 11.9 percent) and was the second-best figure achieved in the company’s history to date. By comparison, the cash flow from operating activity developed very positively, rising by almost 60 percent to EUR 56.6 million.
The more restrained growth in sales and income at the GfK Group results mainly from two factors: negative currency effects and the fact that business in two divisions, Custom Research and HealthCare, fell short of expectations. At a regional level, GfK recorded a very high level of organic growth in the emerging markets of Central and Eastern Europe, Asia-Pacific and Latin America. At divisional level, the high-margin retail and technology, and media divisions recorded particularly dynamic growth.
The GfK Group achieved an increase in sales of 3.6 percent to EUR 553.7 million in the first six months of the year, compared with the same period in the prior year. Organic growth at the company rose by 4.9 percent. Overall, 0.5 percent of growth was attributable to acquisitions. Negative currency effects reduced growth by 1.8 percent.
In results for the second quarter ended June 30, 2007, National Research Corporation, Lincoln, Neb., reported that quarterly revenue increased by 12 percent, quarterly net income increased by 24 percent and quarterly diluted earnings per share were up 21 percent to $0.23. Revenue for the quarter ended June 30, 2007, was $11.9 million, compared to $10.7 million for the same period in 2006. Net income for the quarter ended June 30, 2007 was $1.6 million, or $0.24 per basic and $0.23 per diluted earnings per share, compared with net income of $1.3 million, or $0.19 per basic and diluted share, in the prior year period. Revenue for the first half of 2007 increased 20 percent to $24.1 million, compared to $20.1 million for the same period in 2006. Net income for the first six months of 2007 increased 28 percent to $3.2 million resulting in $0.47 per basic and $0.46 per diluted earnings per share, up 27 percent and 24 percent respectively, over the same period in 2006.