Nielsen Revenues Flat in 2009

The Nielsen Company has announced its financial results for the year ended December 31, 2009. Revenue was almost exactly level with the previous year ($4,806m) but up 4% if currency fluctuations are excluded.

Reported operating income dropped from $421m to just $116m due mostly to impairment charges: the 2009 results included a non-cash charge related to the impairment of goodwill and intangible assets of $527 million as well as $62 million of charges relating to restructuring costs. Corresponding figures for 2008 were $96m (impairment of goodwill) and $118m (restructuring costs). Adjusting for these items, Nielsen says that operating income on a constant currency basis increased 15%.

Covenant EBITDA was $1,329m, and total debt $8,658m with cash balances of $511m. Capital expenditures were $282 million for the year ended December 31, 2009, compared with $370 million for the year ended December 31, 2008.

Two months ago Nielsen realigned its business structure into three segments, known as Watch (What Consumers Watch, ie media audience measurement and analytics); Buy (What Consumers Buy - consumer purchasing measurement and analytics); and Expositions. The last of these generated just 4% of revenues in 2009, while the two research divisions accounted for 34% (Watch) and 62% (Buy).

In a conference call today the firm said revenues for 'Watch' rose around 10% in 2009, on a like-for-like basis, to $1.64bn while 'Buy' fell 2.9% to $2.99bn. However, removing the effects of the acquisition of the remaining 50% of joint venture AGB Nielsen Media Research from 'Watch' and allowing for currency effects, both divisions would have risen by the same figure, 2.7%.

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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