'Soft' US Buy Business, 'Pruning' Limit Nielsen Growth

Nielsen has reported a 3.0% increase in second quarter revenue to $1.644bn, equivalent to a 4.1% rise on a constant currency basis. In organic terms - excluding the acquisition of Gracenote - the quarter was almost flat.

Revenue for the Watch division increased to $821m, up 10.9% in constant currency terms. Excluding the effect of acquiring media and entertainment data provider Gracenote, the rise was a more modest 'though still respectable 3.5%. With the Gracenote deal, Audience Measurement of Video and Text revenues increased 16.0% in constant currency terms; Audio revenues were flat for the quarter; Marketing Effectiveness revenues increased by 18.6%; and other Watch revenues decreased 17.2%, due to the firm's 'portfolio pruning' initiatives.

In the Buy segment, Nielsen's consumer purchase analysis business, constant currency revenue decreased 2.0% to $823m. Emerging markets revenues increased 10.0%, but developed markets decreased 1.2%, led by continued 'softness' in the US. Second quarter revenue in Corporate Buy fell by 69.1% to $38m, which Nielsen says was primarily due to divestitures in December 2016.

Overall for the group constant currency net income increased 17.0% to $131m, due primarily to lower restructuring charges; and Adjusted EBITDA rose 4.9% to $512m. CEO Mitch Barns (pictured) comments: 'Our revenue in the quarter reflects solid growth in Watch, robust growth in Buy emerging markets, and the contribution from our recent acquisition of Gracenote. This was partially offset by continued softness in our US Buy business, which reflects the challenging operating environment for our large fast-moving consumer goods clients. Our rigorous cost and commercial discipline in the quarter enabled us to deliver margin expansion, while also investing in our key growth initiatives'.

Web site: www.nielsen.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.