Global publisher and market research firm VNU has reported a ‘reasonable’ set of interim financial results, although B2B performed weaker than expected, according to analysts at ABN Amro. Headline profits came in at €398 million (£252 million), against the broker’s forecast of €403 million.
VNU has a cautious outlook for the coming year and has lowered its 2001 earnings per share (EPS) from 11-12% to 5%. This is primarily due to the general weakness being felt in the advertising market at present and is line with the stance taken by many other advertising-related groups.
Ad revenues at VNU were down by 15% in the first half. In Europe advertising declined by 12%, whilst the US business magazines division saw a drop of 25%. A 20% year on year decline in advertising is expected by ABN to continue into Q2 2002.
Organic growth declined by 2% and profits by 17%. ABN says that the market is likely to be disappointed by this growth, although maintains an Add recommendation and is positive about the medium- to long-term position of the group.
VNU owns the Nielsen Media Research and ACNielsen market research companies. Market research now accounts for half of VNU’s businesses.
ABN Amro: Add
