Nielsen Restructuring Costs Drive Down Q3 Profit

Nielsen has reported a 2.5% rise in third quarter revenue to $1.57bn (3.6% on a constant currency basis) compared to Q3 2015. The 'Watch' segment grew rapidly (up 6.7% at constant currency), while restructuring in 'Buy' held back its revenue and drove an 8.3% fall in Nielsen's overall net income to $132m.

Restructuring charges were $29m, compared to $15m a year earlier. Adjusted Net Income rose 3.1% (constant currency) to $266m; while Adjusted EBITDA was up 4.0% on a reported and constant currency basis to $498m.

All growth figures below are calculated on a constant currency basis.

Revenues within the Buy consumer purchase behavior segment were $809m, up 0.9%. In developed markets they decreased 2.5% due to softness in the firm's discretionary services, especially in the US market, as well as 'portfolio pruning' initiatives; while Buy emerging markets revenues increased 8.5%.

Revenues within the Watch media research segment were $761m, up 6.7%. Audience Measurement of Video and Text revenues increased 8.5%, Audio fell 2.8% due to timing of deliveries, and Marketing Effectiveness revenues grew 31.8% due to continued investments in the product portfolio. 'Other' Watch revenues decreased 16.3% due to the sale of the National Research Group - but excluding this effect the Watch segment grew 8.4%.

CEO Mitch Barns (pictured) comments: 'Our revenue grew in the third quarter, despite a more challenging environment, highlighting the strength of our balanced portfolio. Many of our clients are seeking efficiency and productivity in the face of a challenging growth environment. Given these evolving needs, we are realigning our portfolio by exiting non-core services, reallocating resources and accelerating our investments in our strategic initiatives. In short, our Buy business is working through a process of change that is similar to what we've been executing on successfully in our Watch business'.

Web site: www.nielsen.com .