Currency Changes Push Nielsen Revenue Down

Nielsen has reported revenues for the three months to the end of March down 7% to $1.1bn from $1.2bn for the same period last year. Excluding the impact of currency fluctuations however, revenues increased 1%.

Q1 2009 operating income was $109m compared with $115m in 2008. These results were negatively impacted by $5m and $7 million, respectively, of charges relating to restructuring costs. Adjusting for these items, operating income, on a constant currency basis, increased 1%.

Consumer revenue came in at $597m, which on a constant currency basis was virtually flat. Operating income for the division was $50m, excluding $3m in staff redundancy payments.

Revenue was down in the firm's new product sales forecasting unit BASES, in its analytical consulting arm, and its customer research businesses.

According to CFO Brian West, clients are still reducing discretionary spend, and are keen to obtain better insights on how consumers are behaving and how to best position product promotion from their existing research programs.

Revenue in the media research segment increased 12% to $451m, supported by 16% growth in the TV measurement division, which included contributions from recently acquired TV ad effectiveness firm IAG Research and TV audience media measurement business, AGB.

Geographically, North America was flat and Europe experienced some downward pressure, but the developing markets showed some growth - particularly in Latin America, South East Asia and India.

West said that full year expectations have not changed since the financial figures were reported six weeks ago.

Web site: www.nielsen.com .