Flat Quarter for 'Transforming' Nielsen

Nielsen has reported a 2.9% fall in first quarter revenue (+0.4% on constant currency terms), to $1.6bn, with net income down 40% to $43m from $72m a year ago, but adjusted EBITDA up slightly (+0.5%) at $415m.

In February, CEO David Kenny (pictured) announced that Nielsen would be shifting its 2019 focus, to transform the company into a 'product-driven technology organization', following a 0.9% decrease in full year 2018 revenue to $6.5bn. Kenny was brought in last October as the company kicked off a review to consider options including a separation of either of its two key segments; a sale; or continued operation as one public, independent company. Earlier this month, CNBC reported private equity groups Advent International and Apollo Global Management are considering making bids for Nielsen.

Q1 revenues within the Global Media segment (similar to the old 'Watch' division) rose 1.3% on a constant currency basis, with a reported figure of $826m. Within this, Audience Measurement fared relatively well, up 2.2% on a constant currency basis - the firm put this down to continued client adoption of the Total Audience Measurement system, partly offset by pressure in local television measurement. This segment now also includes a unit called Plan/Optimize, for which revenues on a like-for-like, constant currency basis were flat.

Within the Global Connect segment (similar to the old 'Buy'), reported Q1 revenues were down 6.2% to $737m - down 0.7% on a constant currency basis. Within this, revenue in Measure rose 1.7% on a constant currency basis, reflecting strong performance in retail measurement services and improved trends in the US; while revenues in Predict/Activate decreased 6.6% on a constant currency basis due to 'continued softness in areas such as innovation and custom analytics'.

Q1 net income of $43m was down 33.8% on a constant currency basis, due the company said to 'higher restructuring charges, higher depreciation and amortization and the phasing of strategic initiatives'. Adjusted earnings per share fell from $0.40 to $0.35. Adjusted EBITDA was $415m, up 0.5% on a constant currency basis.

Commenting on the first quarter results, Kenny said: 'While I'm pleased with our first quarter results, we have a significant opportunity to accelerate our growth rate over time as we leverage and build on our incomparable data assets, our global footprint, and the critical role we play in the media and FMCG industries. We have begun our transformation into a truly product-driven, technology organization, able to make faster, bolder decisions that drive greater value for our clients and for Nielsen'.

Web site: www.nielsen.com .