Nielsen Reports 'Solid' Revenue Growth

Nielsen Holdings plc (today announced second quarter 2016 results. Revenues were $1,596 million for the second quarter of 2016, up 2.4%, or 4.5% on a constant currency basis, compared to the second quarter of 2015, due to the solid performance of both its Buy and Watch businesses.

“Once again, in the quarter we saw solid revenue growth, strong margin expansion and earnings growth driven by our scalable, consistent business model, investments, and a continuous focus on productivity. In the Watch segment, client adoption of our Total Audience Measurement system continues to gain momentum. The syndication of Digital Content Ratings for participating clients in May was a key milestone, and we remain on track for the syndication of Total Content Ratings for participating clients in the third quarter. We made important progress with key industry stakeholders toward the adoption of a new currency,” said Mitch Barns, Chief Executive Officer of Nielsen.

Mitch Barnes

Barns continued, “In the Buy segment, our growth in emerging markets continues to be robust, fueled by our ongoing focus on both local and multinational clients, as well as strengthening our portfolio through innovation. Globally, we are focused on Total Consumer Measurement, providing both manufacturer and retail clients with the complete view of the consumer, whether in-store, out-of-home or online. These efforts help clients both measure performance and drive improved outcomes.”

Net income for the second quarter of 2016 decreased 1.7% to $114 million, largely due to the impact of foreign exchange, but increased 3.6% on a constant currency basis, compared to the second quarter of 2015, driven by strong revenue growth and the operating leverage of the business. Net income for the second quarter included restructuring charges of $34 million primarily related to the company’s market realignment in the Buy segment. Net income per share on a diluted basis of $0.31 was flat with the second quarter of 2015.

Adjusted Net Income for the second quarter of 2016 of $257 million increased 4.5%, or 6.6% on a constant currency basis, compared to the second quarter of 2015. Adjusted Net Income per share on a diluted basis grew 7.6%, or 9.2% on a constant currency basis, to $0.71 for the second quarter of 2016 compared to $0.66 in the second quarter of 2015.

Adjusted EBITDA for the second quarter of 2016 increased 4.7% to $490 million, or 6.5% on a constant currency basis, compared to the second quarter of 2015. Adjusted EBITDA margins grew 68 basis points, or 60 basis points on a constant currency basis, to 30.7%, due to the benefit of our ongoing productivity initiatives and the operating leverage of the business. Buy Adjusted EBITDA margins increased 47 basis points or 57 basis points on a constant currency basis, to 19.5%. Watch Adjusted EBITDA margins grew 21 basis points or 24 basis points on a constant currency basis, to 44.6%.



Revenues within the Buy segment for the second quarter were flat at $852 million due to the impact of foreign exchange, but increased 3.3% on a constant currency basis. Buy revenues in developed markets were flat due to the impact of foreign exchange but increased 0.9% on a constant currency basis due to modest strength in core measurement, which was partially offset by softer discretionary spend. Buy emerging markets revenues were flat due to the impact of foreign exchange but increased 8.9% on a constant currency basis as Nielsen’s unparalleled global footprint remains a core competitive advantage for both local and multinational clients.

Revenues within the Watch segment for the second quarter of 2016 increased 5.2%, or 5.8% on a constant currency basis, to $744 million. Audience Measurement of Video and Text revenues increased 7.2%, or 7.9% on a constant currency basis, due to the continued client adoption of the company’s Total Audience Measurement framework and ongoing investments. Audio revenues grew 1.7% on a reported and constant currency basis. Marketing Effectiveness had another strong quarter, growing revenues by 13.5%, or 15.1% on a constant currency basis, due to our continued investments in our product portfolio and clients’ growing demand for our marketing ROI and precision targeting tools. Other Watch revenues decreased 14.8% on a reported and constant currency basis, due to the sale of the National Research Group, Inc., which was completed in the fourth quarter of 2015. Excluding Other Watch, our Watch segment grew 6.9%, or 7.6% on a constant currency basis, for the quarter.