• by Joe Mandese  @mp_joemandese, March 9, 2005

Driven by the strength of its media research operations, especially Nielsen Media Research in the U.S., VNU Tuesday reported strong year-end results for 2004 and strong guidance for 2005. The ad marketplace for its U.S. trade publications, including titles like Adweek, Billboard and Mediaweek, continues to be sluggish, though there has been an upturn in the entertainment sector, particularly at The Hollywood Reporter.

VNU reported total revenues of $5.1 billion, a decrease of 3 percent from 2003, but an increase of 5 percent on an "organic" basis after factoring the impact of exchange rates and divestitures. On an organic basis, operating income grew 5 percent, due mainly to the "excellent performance" of VNU's Media Measurement and Information group, which includes Nielsen Media Research.

The "group delivered its fourth consecutive year of record results, with organic revenues growing 8%. In the US, Nielsen Media Research grew its organic revenues 12% as it continued to expand its national people meter service and introduce local people meter coverage in the nation's largest markets. Despite some controversy, virtually all Nielsen clients are supporting the LPM because it will deliver more detailed, accurate and timely audience estimates," the company said.

VNU, which is in the process of relocating its corporate headquarters to New York from the Netherlands, and which is expected to make a major acquisition soon, said it expects its media research business to grow at about the same overall 8 percent rate in 2005. It also said it foresees a "strengthening of the advertising market" for its trade magazines, though it noted that they increasingly are deriving their revenues from sources other than advertising. "Trade shows now account for 83 percent of the group's operating income and 32 percent of its revenues," the company reported.