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NEWS21 December 2015

GfK lowers margin target

News

GERMANY — GfK has issued a statement that it’s no longer likely to meet its annual guidance for the AOI margin (adjusted operating income based on sales) based on its financial performance in the first 11 months of this year.

It has previously predicted a margin of 12.4% – 12.8% but this has been lowered to 12% for 2015. GfK said it was mainly because of delays and additional costs in its TAM contracts in Brazil and Saudi Arabia, as well as slower orders and sales in this Consumer Experiences sector.

It has also announced that it will stop developing its work on mobile insight/location insight network-centric measurement because of technical difficulties preventing a consistent and continuous supply of data from its two main suppliers. However, other mobile developments will continue.

These changes will result in an unplanned write-down of the remaining book value of between €12m and €13m which will adversely affect its 2015 results.

@RESEARCH LIVE

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