WPP's research boss welcomes TNS to the Kantar fold
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UK-- WPP's research chief Eric Salama was at TNS's London headquarters today, less than 24 hours after the £1bn takeover of the global research agency was declared unconditional.
He was meeting with managers and staff of the firm, which becomes the latest addition to the Kantar Group of information, insight and consultancy companies, of which Salama is CEO.
Salama will continue to head up the enlarged group, which now numbers 26,500 employees across 80 countries.
He was unavailable for comment today on what the next steps are for bringing TNS into Kantar, though the firm will retain its own identity in the same way that the 18 other research agencies that make up the Kantar Group have done so, including Added Value, Millward Brown and Research International.
Both Salama and WPP chief executive Martin Sorrell issued statements late yesterday welcoming TNS into the fold.
Sorrell acknowledged that staff must have felt like they had been through a “long period of uncertainty” over the future ownership of the company – beginning in April, when TNS revealed it was in talks to merge with GfK before those plans were scuppered by WPP's takeover bid.
“It's good that we're now in the much happier position of being able to communicate properly and to share with you how we plan to integrate TNS with our information, insight and consultancy division,” said Sorrell.
Kantar posted third-quarter revenue figures today of £246.7m, up 12.9% year-on-year on a reported basis or 4% excluding the effects of currency movements. Revenue for the nine months ending 30 September was £733.2m, an increase of 12.7% or 6.1% at constant currencies.
However WPP has warned that 2009 will be “a very tough year”. As for the remainder of 2008, the marketing services group said: “The third quarter revised forecasts submitted by our operating companies, which include revenue forecasts for the fourth quarter, appear cautious.”
Following his visit to TNS, Salama will join other senior WPP executives in New York next week to review these forecasts. WPP said: “Everything will be done to try to achieve our improved operating margin target of 15.5% for 2008, although attaining this will not be easy.”
Nine-month revenue for WPP as a whole was £5.06bn, up 14.9% or 7.4% in constant currencies.
Author: Brian Tarran
Related links:
WPP declares victory in its bid to buy TNS
Kantar's Eric Salama on the options ahead for TNS
WPP Group's research growth stays strong
