Solid Quarter for Nielsen

Nielsen has announced results for the quarter and six months ended June 30. Reported quarterly revenues rose to $1,270m, up 7% year-on-year and reported operating income rose 6% from $172m to $182m - a rise of 10% after adjusting for one-off costs and currency changes.

Currency fluctuations made no significant impact on the revenue rise figure.

Reported revenues for the six months ended June 30 were $2,466m, up 8% on the year or 5% after allowing for currency fluctuations. Reported operating income of $314m was $30m up on last year - after adjusting for restructuring costs the rise was 10%. Covenant EBITDA was $1,396m for the twelve months ended June 30, on which date total debt was $8,440m.

Nielsen, which is controlled by a group of private equity firms, filed two months ago with the US SEC to raise up to $1.75bn in an initial public offering (IPO), which it will use to pay down debt and for 'general corporate purposes'. The research giant now divides its business into three segments: Watch, for media and audience research; Buy for consumer behaviour and Expositions (trade shows).

Watch grew revenue 7.2% to $432m, or 6.6% at constant currency, while operating income was basically constant at $85m ($87m a year earlier). The company's 'Three Screen' measurement initiatives are adding to costs at present.

Revenues for the Buy segment climbed 9.2% to $800m, or 8.3% on a constant currency basis, while operating income rose from $103m in Q2 2009 to $118m in Q2 2010, fuelled largely by growth in developing markets. The trade show business remains depressed, with revenues down 17.8% to $38m, 'though an operating loss of $4m was turned into an income of $8m thanks to cost savings.

The group's home page is at www.nielsen.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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