Video Research Ltd. Announces 42nd Annual Meeting of Shareholders Results
June 18, 2004
Video Research Ltd. (Tokyo, President & CEO: Tsuyoshi Takeuchi) announces the results of the 42nd Annual Meeting of Shareholders held at 11:00 AM today.
Analysis of Financial Condition and Results of Operations
Due to an unfavorable economic environment in recent
years, the revenue related to Mass Media Information Services decreased
in comparison to the previous year, which was offset by over 10% growth
in the revenue of other operations.
In fiscal year 2003, Video Research focused on developing data that provided
service via Internet, iNEX2, digitalized indicators and measurement methods
and the establishment of our promising Single Source Database called VR
Personal Scan, which is a fusion database of consumer activities and TV
Ratings. The depreciation cost of these capital expenditures and the R&D
cost led to the decline of gross income.
- Revenue increased 1.6% year-on-year
Revenue increased 1.6% to 19,337.31 Million Yen in fiscal year 2003 compared with the previous fiscal year.
- Revenue increase and income decline
Despite 1.6% increase of revenue, operating income decreased 14.9% to 2,337.126 Million Yen year-on-year, while gross income decreased 14.0% to 2,379.746 Million Yen. Net income increased 46.1% to 1,349.11 Million Yen in fiscal year 2003.
The 42nd Consolidated Statement of Income for Fiscal Year 2003
Summary of Consolidated Financial Statement
From April 1, 2003 to March 31, 2004
Ordinary Income
(Loss) |
|
 Operating
Income (Loss) |
|
| Revenue | 19,337 |
| Operating Expense | 17,000 |
| Operating Incomer | 2,337 |
| Non-Operating
Income (Loss) |
|
| Other Income | 52 |
| Other Expense | 9 |
| Gross Income | 2,379 |
Extraordinary Income
(Loss) |
|
| Extraordinary Income | 4 |
| Extraordinary Expense | 378 |
| Net Income before Income Tax Expense | 2,005 |
| Corporate Tax, Local Tax and Enterprise Tax Expenses | 798 |
| Adjustment to Corporate Tax Expenses | (97) |
| Net Income | 1,304 |
| Retained Income from Fiscal Year 2002: | 114 |
Business Plan for Fiscal Year 2004
The 43rd fiscal year started from April 1, 2004, which is the second year of the 3-year Business Plan. Video Research Ltd. will review the Plan in order to assess the current operations and optimize the allocation of resources.
Highlight of Business Plan in Fiscal Year 2004
1. Media Research Operation
1) Measuring Terrestrial Digital Broadcasting
Audiences
Based on industry consensus, Video Research entered into audience measurement
of Terrestrial Digital Broadcast stations in December 2003. We have advanced
the development of a digital censor, which identifies each SD channel, and
will be deployed in Terrestrial Digital TV viewable households. In addition,
we continue to address issues on providing audience ratings data per channels
in the future.
2) The People Meter in Nagoya
We are carrying out adequate preparations for a Mechanical Individual Audience
Rating Survey in Nagoya (People Meter Survey), targeted to start service
from April 2005.
3) Providing Daily Report for Designated Markets
with 24-Week Audience Surveys per Year
As part of the expansion of audience rating business in local areas, we
are starting to provide daily reports for designated markets with 24Week
Audience Surveys per year from October.
4) Transit Media Independent Survey
We intend to conduct an independent survey for transit media, which has
been overlooked, to standardize its rating data.
2. Marketing Research Business
5) Video Research Personal Scan
Video Research has entered into providing our major clients with Individual
Single Source Data (2,000 survey sample), which is fusion data of consumer
behavior and TV contact, from July. We promote it as industry standard.
6) Brand@iNEX Service
We have entered into a One-Stop Marketing Information Service centered on
brands, Brand@iNEX, to provide complex information that consists of advertising
statistics, brand awareness, point of sales
data, individual purchase data, etc.
7) Market Contact Audit (MCA)
In order to contribute to resolving marketing management issues of our clients,
we have advanced commercialization of MCA service to measure and audit the
contribution of advertising and promotion to brands.
3. Improvement of Business Infrastructure
8) Reinforcement of Quality Control and Information
Control Management
We conduct Rating Surveys in accordance with the Quality Management System
of ISO 9001, and other surveys in accordance with "Marketing Research
Quality Control Guideline" of Japan Marketing Research Association.
We are also committed to protecting privacy of personal information in accordance
with "Privacy Mark."
In addition, based on the lessons and reflections from the rating data-rigging
incident, which occurred in October 2003, we implemented and strengthened
our information control measures.
9) New Management Information System and Secondary
System Construction
We have commenced operating the primary accounting system and established
the secondary system, which will be an integrated management information
system comprised of consolidated budget and purchasing management systems,
and capable for statutory audits.
10) Separation of Management and Operation
From the perspective of corporate governance, we have separated management
and operating functions. Board members are devoted to managing the company
and authority and responsibility of division heads are increased.
Video Research Ltd. Executives and Board of Directors
Executive Directors
| President & CEO |
Tsuyoshi Takeuchi |
| Executive Vice President | Yuichi Yasutake |
| Senior Managing Director | Kazumasa Keimatsu |
| Managing Director | Yoshikazu Yamazaki |
| Managing Director | Masahiro Ohki |
| Managing Director | Hideki Yamamoto |
| Board Director | Yoshifumi Oda |
| Board Director | Nagasaburo Miyamoto |
| Board Director | Shigeru Kido |
| Board Director | Shigeho Hirota |
| Board Director | Shuhei Mishima |
| Corporate Auditor | Setsuzo Miyake |
Non- Executive Directors
| Director |
Tatsuyoshi Takashima (Executive Vice President, Dentsu, Inc.) |
| Director | Yukio Sunahara (Representative Director, Chairman, Tokyo Broadcasting System, Inc.) |
| Director | Seiichiro Ujiie (Representative Director, Chairman, Nippon Television Network Corporation) |
| Director | Hisashi Hieda (Chairman & CEO, Fuji Television Network, Inc.) |
| Director | Michisada Hirose (President & CEO, TV Asahi Corporation) |
| Director | Yutaka Ichiki (Representative Director, Chairman, Television Tokyo Channel 12, Ltd.) |
| Director | Hideo Sugimoto (Corporate Officer, Hakuhodo Incorporated) |
| Director | Koji Takada (Senior Managing Director, Yomiuri Telecasting Corporation) |
| Director | Haruyoshi Totsukawa (Senior Managing Director, Kansai Telecasting Corporation) |
| Director | Kenichi Yokoyama (Representative Director, Chairman, Chubu-Nippon Broadcasting Co., Ltd.) |
| Director | Naofumi Sagara (Managing Director, RKB Mainichi Broadcasting Corporation) |
| <Newly-Appointed> Corporate Auditor | Kanekazu Sufu (Assistant Director, Corporate Auditor Department, Dentsu Inc.) |
| <Newly-Appointed> Corporate Auditor | Osamu Naganuma (President, Hokkaido Broadcasting Co., Ltd.) |
Resigned
| Corporate Auditor |
Seiichiro Shinozaki (Director, Corporate Management Department, Dentsu, Inc.) |
| Corporate Auditor | Shigeaki Shirai (President, Sapporo Television Broadcasting Co., Ltd.) |
