Nielsen Expects 6% Revenue Rise for 2010

Ahead of the official release of its financial results for calendar year 2010, Nielsen has reported an expected revenue increase of between 6.3% and 6.7% to between $5,110m and $5,130m (2009 = $4,808m), equivalent to 5.8% to 6.2% on a constant currency basis.

Nielsen says increase comes mostly from continued geographic expansion and increased spending from new and existing customers of both its Buy consumer research business and Watch media measurement arm.

Operating income for the fiscal year ended December 31, 2010 is expected to be between $715m and $735m; again driven by the growth of revenues in the Watch and Buy segments, as well as cost savings from productivity initiatives, offset in part by investments in technology infrastructure.

In November, Nielsen reportedly struck a new deal with CEO David Calhoun (pictured), adding three years to his contract in exchange for a salary rise and a $6m signing bonus.

At the end of the year, the firm had approximately $400m of cash and cash equivalents and approximately $8,600m of debt. In the summer, the research giant filed with the US Securities and Exchange to sell stock in order to raise funds to pay off the consortium of private equity investors that took it private in 2006, raising debt to current levels.

Nielsen has provided a range, rather than a specific amount, for the preliminary results because its financial closing procedures for 2010 are not yet complete. The company expects to announce its actual results in February 2011.

Web site: 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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