Nielsen Revenues Up 4.5% in 2008

Nielsen has reported 2008 revenues up 4.5% on a constant currency basis to $5bn, despite a climate which CFO Brian West predicts 'won't get any better, any time soon'.

Reported operating income for the year dropped to $118m from $416m in 2007. West explained that these results were negatively impacted by $726m of charges relating to goodwill impairment, restructuring costs, deal related costs and compensation agreements.

During the year, Nielsen made nearly 3,000 staff redundant as part of a cost-cutting exercise, and their severance payments accounted for most of the $120m restructuring costs.

However, adjusting for these items, West said that operating income, on a constant currency basis, increased 12.5% to $670m.

The firm's consumer services division saw revenue grow 3.8% to $2.84bn, while in the media research division, revenue rose 10% to $1.74bn and the TV ratings business was up 8.5%. Revenue for online work increased 15.7%, and consumer panel revenue grew 1.2%.

Analytical consulting revenue climbed 22%, and West described this area of the business as being particularly buoyant.

Despite the healthy figures, Nielsen is taking measures to safeguard its cash position and gird itself for a tough year in 2009. It may also be a tough year for its suppliers, whom it told earlier this week to expect a 75-day wait for payment of invoices.

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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