Nielsen Q2 Results Exceed Expectations

Nielsen Holdings plc has  announced its second quarter 2019 results and reaffirmed revenue, Adjusted EBITDA, and free cash flow guidance for 2019. The company also raised adjusted EPS guidance.

David Kenny, Chief Executive Officer, commented, "Nielsen has evolved significantly over the past year. Our second quarter results were once again slightly ahead of our expectations. We continue to make progress on our transformation into a product driven technology company, making faster, bolder decisions that enhance value for our clients.

David Kenny

"We were pleased with revenue trends in both Media and Connect and have also demonstrated progress in moving towards a modern architecture, highlighted by the successful transition of our National TV measurement processing to the cloud.  We have aligned our organization around two industry-leading businesses serving the media and fast moving consumer goods industries that are capable of greater profitability, higher cash flow conversion, and delivering strong shareholder value."

Kenny continued, "The strategic review continues and the Board is focused on completing the process by the third quarter earnings release. We will discuss the outcome and go-forward plan at the conclusion of the process. In addition, we remain focused on executing on our growth strategies and positioning the company to maximize value for all of our shareholders."

Second Quarter 2019 Results

• 2nd quarter revenues were $1,628 million, down 1.2% reported, or up 1.2% on a constant currency basis, compared to the prior year. 
• Nielsen Global Media revenues increased 1.1% to $856 million, or 2.0% on a constant currency basis, compared to the prior year. 
• Audience Measurement revenues increased 3.5%, or 4.2% on a constant currency basis, primarily due to continued client adoption of our Total Audience Measurement system, partly offset by pressure in local television measurement.  
• Plan/Optimize revenues decreased 4.9%, or a decrease of 3.3% on a constant currency basis primarily driven by historical data sales related to a product category exit and pressure in Telecom, partially offset by a recent acquisition.
• Net income increased 70.8% to $123 million, or 83.6% on a constant currency basis, compared to $72 million in the prior year, due to lower restructuring charges and lower tax expense, partially offset by higher depreciation and amortization. 
• Adjusted EBITDA increased 0.4% to $470 million, or 2.0% on a constant currency basis, compared to the prior year. 

Adjusted EBITDA margin increased 45 basis points to 28.9%, or 20 basis points on a constant currency basis compared to the prior year, as productivity initiatives were partially offset by investments in growth initiatives.
Financial Position.