Nielsen has reported a 1.2% drop in second quarter revenues to $1.63bn - although excluding currency effects it would have risen by the same amount. Adjusted EBITDA increased 0.4% to $470m - a rise of 2% at constant currency.
Earlier this year, Nielsen re-structured into two new segments, Global Media and Global Connect. As in previous quarters, the marketing services business 'Connect' (similar but not identical to the old 'Buy') trailed the Media ('Watch') business in Q2: Connect's revenue fell 3.5% to $772m (up 0.4% at constant currency) while Media rose 1.1% to $856m (up 2.0% on a constant currency basis). Within the latter, TV media measurement revenue from its Total Audience Measurement product was up 3.5% to $622m.
Group net income, on a reported basis, increased 70.8% to $123m, due to lower restructuring charges and lower tax expense, partially offset by higher depreciation and amortization.
CEO David Kenny (pictured) was brought in last October as the company kicked off a strategic review, the upshot of which could include continuing to operate as a public, independent company; a separation of either of the two key segments; or a sale of the whole company. The firm now says the review - originally slated to finish in July - will be completed by the time it releases its third quarter financial results.
Commenting on the financial results, Kenny said: 'We were pleased with revenue trends in both Media and Connect and have also demonstrated progress in moving towards a modern architecture, highlighted by the successful transition of our National TV measurement processing to the cloud. The strategic review continues and the Board is focused on completing the process by the third quarter earnings release. We will discuss the outcome and go-forward plan at the conclusion of the process'.
Web site: www.nielsen.com .
All articles 2006-19 written and edited by Mel Crowther and/or Nick Thomas.