Nielsen Watch Division Drives First Quarter Growth

Nielsen has reported first quarter revenues of $1.5 billion, up 3.2% after excluding the impact of exchange rate fluctuations. The result was driven by a strong performance in the Watch media research division, while the Buy side saw a decline.

Revenues within the Watch arm were up 10.8% (or 11.1% in constant currency terms) to $769m. Excluding the firm's acquisition of media and entertainment data provider Gracenote, revenues increased 5.9% (or 6.2% on a constant exchange rate). Audience Measurement of Video and Text revenues rose 13.3% on a reported and constant currency basis, and excluding the Gracenote deal, revenues for this segment increased 6.1% on both a reported and constant currency basis. Audio revenues were flat for the quarter; Marketing Effectiveness revenues increased by 12.1% (or 14.0% on a constant currency basis); and Other Watch revenues increased 11.4%, or 14.0% in constant currency terms.

In the Buy consumer purchase behaviour division, revenues fell 4.5% to $757m (-3.7% in constant currency terms). Buy revenues in the developed markets decreased 8.5%, or 7.3% on a constant exchange rate, due to what the firm describes as continued 'softness' in its US market. Emerging markets increased 9.9% on both a reported and constant currency basis; while revenues in the Corporate Buy division dropped $16m, or 45.7% on a reported and constant currency basis, primarily due to the sale of Nielsen's Claritas business in December.

Overall for the group, first quarter net income decreased 29.0%, or 29.7% on a constant currency basis, to $71m, due mainly to higher restructuring charges associated with the firm's productivity initiatives. Adjusted EBITDA for the first quarter of 2017 increased 5.0%, or 4.7% on a constant exchange rate, to $422m, compared with the first quarter of 2016. Commenting on the figures, CEO Mitch Barns (pictured) said: 'Our first quarter results highlight the importance of our balanced portfolio. We saw continued strength in our Watch segment and in emerging markets, partially offset by a decline in the US for our Buy segment. In our Buy segment, despite the weak growth environment in the US, our productivity initiatives enable us to continue to invest in our measurement coverage and our Connected System, both of which are important to future growth'.

Web site: www.nielsen.com .