GfK Raises Forecast after 9.4% Sales Rise

GfK has raised its 2010 sales and income expectations following a 12.3% rise in second quarter sales to EUR 328.7m, and a 9.4% rise in first half sales to EUR 609.6m. The firm now expects a 6% rise in sales for the year, which is double its original projection.

During the first half of the year, adjusted operating income climbed 39.3% to EUR 71.9m from EUR 51.6m in the prior year.

GfK's Custom Research sector generated H1 sales of EUR 368.1m - a year-on-year upturn of 9.7% - and income tripled from EUR 6.5m to EUR 19.5m. The firm says that ongoing recovery of business with customers from the automobile and financial markets made a 'major contribution' here.

In the Retail and Technology division, sales grew 10.1% to EUR 172.8m during the period, while income climbed 20.6% to EUR 47.4m.

The firm's Media arm also maintained its position in the first six months, by improving sales by 4.5% to EUR 66.1m. Sector income totaled EUR 7.8m (prior year: EUR 9.1 million).

At the end of July 2010, the order book covered a total of 85.4% of budgeted annual sales, which GfK says represents a 'considerable increase' on the comparative prior-year figure of 81.0%.

For 2010 as a whole, GfK is increasing its margin forecast to increase by up to 13.5% on the original forecast - based on the premise that economic conditions do not worsen.

During the first half of the year, the Group expanded its digital strategy by taking a 40% stake in user experience firm SirValUse Consulting and in usability research specialist nurago. The company also developed the GfK Network Intelligence Solution research methodology (GfK NIS), while extending its GfK Media Efficiency Panel.

'Not only do we look back on an extremely successful second quarter, we also set the path for a new digital era and are well-positioned for the challenges of the future,' states CEO, Professor Dr Klaus Wübbenhorst.

Web site: www.gfk.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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