Nielsen Reports 'Solid' Q1 Performance

Nielsen has reported a 2.0% rise in first quarter revenue to $1,487m, equivalent to growth of 5.2% on a constant currency basis. Growth reflects what it describes as 'solid performance' in both its Buy and Watch businesses.

Revenues within the 'Buy' consumer purchase behavior segment fell 0.6% to $793m due to the impact of foreign exchange, but increased 4.3% on a constant currency basis. In developed markets and in constant currency terms, reported Buy revenues grew 2.0%; and in emerging markets, they increased 10.0%. In the Watch media research division, revenues increased 5.2%, or 6.3% in constant currency terms, to $694m. Excluding the impact of foreign currency, revenues from 'Audience Measurement of Video and Text' increased 7.5%; Audio revenues grew 0.8%; and Marketing Effectiveness revenues rose by 28.8%. 'Other' Watch revenues decreased 18.6% due to the sale of the National Research Group (NRG), which was completed in the fourth quarter of 2015.

During the period, group adjusted net income was up 8.1% to $187m (or 9.4% on a constant currency basis); while net income increased 60.3% to $101m (62.9% on a constant currency basis). This reflects the $26m net negative impact of foreign currency exchange transaction losses in the first quarter of 2015, compared with similar losses of $1m in the first quarter of 2016. Adjusted EBITDA for the first quarter of 2016 increased 5.8% to $402m, or 7.2% on a constant currency basis compared to the first quarter of 2015.

CEO Mitch Barns (pictured) comments: 'Nielsen's strong first quarter results were underpinned by our steady and resilient business model, which drove 5.2% constant currency revenue growth, continued margin expansion and strong earnings growth. Fueled by 10.0% growth in emerging markets and growing momentum with retailers globally, our Buy segment grew 4.3% on a constant currency basis. Our Watch segment grew 6.3% on a constant currency basis due to meaningful progress with our Total Audience Measurement framework and notable growth with our precision targeting and analytical solutions within Marketing Effectiveness'.

Web site: www.nielsen.com .