Europe a 'Drag' on Nielsen's Business

Nielsen has reported a 3% increase in Q1 revenues to $1.38 billion, despite performance in Europe which CFO Brian West said in a conference call continues to be a 'pretty big drag' on the company.

Overall company revenues were driven by a 3% increase in the firm's Buy (consumer purchase behavior) division to $825m, and a 4% rise in its Watch (media research) division to $494m. Revenues fell 7% to $57m in the Expositions segment, as a result of trade show timing between quarters.

Within 'Buy', Information Services increased to $648m, as a result of growth in both North America and the developing markets, while the smaller Insights arm fell to $177m.

However, West (pictured) said the business in Europe had been 'going sideways' for the past three years, primarily because Insight business has deteriorated 'significantly' in the last 18 months. The Information division is said to be holding up well.

In a conference call, West commented: 'I don't see that changing. The only thing that probably gives us some concern as we look to the rest of the year is just the extent to which it influences Eastern Europe, which we always have viewed as a developing market. It's been a tough situation and I think it's going to stay a tough situation as far as I can see.'

Overall for the quarter, the company reported a 5% increase in adjusted EBITDA to $349m, as net income rose to $34m, up 36% compared with the prior year period. First quarter net income was up 26% to $145m.

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