'Watch' Keeps Nielsen Growing Again

Nielsen has reported first quarter 2018 results, with revenues up 5.5% to $1,610m, a rise of 2.4% on a constant currency basis. As in recent quarters, the Watch division did very well, with a 7.1% increase in constant currency, while the Buy division saw a 2.1% decline.

Watch revenue was $834m. Within this, revenue for Audience Measurement of Video and Text increased 10.5% on a constant currency basis, with Nielsen citing investment in and adoption of its Total Audience Measurement system. Audio revenues were up just 0.8% while Marketing Effectiveness revenues increased 22.7% on a constant currency basis.
Reported revenues for Buy were up 2.5% to $776m, but after allowing for currency effects they fell. This reflects a 5.2% decline in developed markets, more than off-setting an increase of 6.1% (constant currency basis) in emerging markets. The firm reports 'continued softness' in the US market.

Net income for the first quarter of 2018 increased 1.4% to $72m, while the profit measure adjusted EBITDA for the first quarter was up 0.7% to $423m (down 0.7% at constant currency). Three quarters of this earnings total came from Watch.

For the full year, the company is predicting total revenue growth on a constant currency basis of c.3% - unchanged from previous forecasts. CEO Mitch Barns (pictured) said of the results: 'In the first quarter, we continued to execute on our key initiatives while focusing on our Path to 2020 objectives. Through continuous innovation, we are transforming our business in three major areas, Watch, Buy, and Operations, to drive a faster growing, higher margin business and create incremental value for our shareholders... Watch had another great quarter with growth driven by Total Audience Measurement. Our ability to provide independent, comparable measurement to the industry is pivotal as media and audiences continue to fragment. In our Buy business, Developed Markets continued to see pressure in the fast moving consumer goods industry in the U.S., but we are confident that our investments in the Connected System, Total Consumer Measurement, and retailer partnerships will drive improved results despite this environment. Emerging Markets saw broad-based growth across markets in Latin America, Eastern Europe, Africa, and China. Our significant competitive advantages, including our balanced client portfolio and global footprint, position us well here'.

Web site: www.nielsen.com .