Mixed Fortunes for TNS Revenues

Revenues for the TNS Americas division will show a larger than anticipated decline for 2005, thanks to decreased demand for custom research in the US. Asia and Latin America, on the other hand, achieved strong growth, and the company expects underlying revenue growth of around 4% for the year.

According to a trading update issued yesterday, demand for the company's syndicated services is growing steadily, but custom research demand has varied according to region and sector.

The US custom research business saw a decline in the second half of the year, thanks to a 'difficult environment in the consumer and domestic healthcare sectors, together with ongoing budget reductions from certain technology clients'. In Western Europe, the company's custom research services saw 'limited growth'.

Overall, Europe saw an improved performance in the second half of the year, with the UK achieving modest growth for the year overall. France and the rest of Europe delivered better than anticipated revenues in the second half of the year. The company says the region as a whole 'grew well in the year, against a weak market environment'.

Latin America continued to produce very strong growth but the Americas region overall will now show a larger than anticipated decline for the year.

Asia Pacific saw strong performance in the second half of the year, ahead of expectations, and recorded excellent growth for the year as a whole.

The company's media, healthcare, automotive and social & polling sectors all achieved 'very good'
growth for the year, while consumer, technology and business services are expected to be broadly flat.

The group expects the operating margin to remain in line with the guidance issued in July. The group expects to achieve an improvement of 25-50 basis points in adjusted operating margin in 2005.

Net debt at 31 December 2005 is expected to be around £300m, compared with December 2004's £329.5m and £342.9m in June 2005.

The company issued a trading update yesterday ahead of its announcement of the full-year results for 2005 on 6 March 2006.

The company, which appointed its new Chair yesterday (www.mrweb.com/drno/news5036.htm ) is online at www.tns-global.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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