Nielsen Profit Surges on Arbitron Acquisition

Nielsen Holdings N.V said its fourth-quarter earnings rose sharply as the consumer-research firm benefited from its acquisition of Arbitron, according to The Wall Street Journal.

Nielsen provides data ranging from what people watch on television to what they buy in stores. The company's profits have generally improved, as growth in emerging markets helped demand for its data and analysis on what consumers buy and watch.

The company last year closed on a roughly $1.3 billion deal to buy Arbitron, best known for measuring radio's audience, but which also has had some success in figuring out how to measure media usage on the Web and mobile devices.

Mitch Barns

“Nielsen’s fourth quarter results reflect solid momentum in both our Buy and Watch businesses as we continue to invest and drive value for our clients. I’m confident our steady and consistent growth will continue in 2014 and beyond, driving long-term shareholder value,” said Mitch Barns, Chief Executive Officer of Nielsen.

Fourth Quarter 2013 Operating Results

Revenues for the fourth quarter increased 11.8% to $1,611 million, or 13.1% on a constant currency basis compared to the fourth quarter of 2012. Excluding the impact of the Arbitron acquisition, revenues increased 2.5%, or 3.7% on a constant currency basis. The Buy segment grew 0.9%, a 2.5% increase on a constant currency basis, to $903 million, driven in large part by a 9.2% increase in developing market revenues on a constant currency basis.

Revenues within the Watch segment increased 29.7%, or 30.4% on a constant currency basis, to $708 million. Excluding the impact of the Arbitron acquisition, Watch revenues increased 5.1%, or 5.7% on a constant currency basis, driven by mid-single digit growth in audience measurement as well as double-digit growth in Advertiser Solutions.

Adjusted Net Income for the fourth quarter increased 16.1% to $274 million, or 19.7% on a constant currency basis, compared to the fourth quarter of 2012. Adjusted Net Income per share on a diluted basis was $0.71 compared to $0.63 in the fourth quarter of 2012.

The fourth quarter marked the first full quarter of Arbitron in results. The integration is going smoothly and on track to deliver the anticipated benefits to clients and shareholders.

Year Ended December 31, 2013 Operating Results

Revenues for the full year 2013 increased 5.5% to $5,703 million, or 6.4% on a constant currency basis, compared to the full year 2012. Excluding the impact of the Arbitron acquisition, revenues increased 3.0%, or 3.9% on a constant currency basis. Our revenue performance was driven by a 1.9% increase within our Buy segment (3.1% increase on a constant currency basis), and an 11.2% increase within our Watch segment (11.7% on a constant currency basis). Excluding the impact of the Arbitron acquisition, our Watch revenues increased 4.7%, or 5.2% on a constant currency basis.