Nielsen Reports 2Q Revenue Dropped 8.1 Percent

• Revenues of $1,496 million decreased 8.1% on a reported basis and decreased 5.9% on a constant currency basis
• Diluted net loss per share of $(0.08) and adjusted earnings per share of $0.41
• Revising 2020 guidance: raising adjusted EPS range and adjusted EBITDA margin target, tightening Free Cash Flow range
• Broad-based optimization plan announced in July to drive approximately $250 million permanent run-rate savings
• Continued progress on positioning Nielsen Global Connect as a standalone public company

Nielsen Holdings plc Wednesday announced its results for the quarter ended June 30, 2020. The Company also refined its 2020 guidance, raising its adjusted EPS range, raising the low end of its adjusted EBITDA and Free Cash Flow estimates on strong cost discipline, and incorporating the impact of planned business exits on revenue. Additionally, the Company continues to make progress toward the planned separation of Nielsen Global Media and Nielsen Global Connect, with the spin-off transaction expected to close in early 2021.

David Kenny

David Kenny, Chief Executive Officer, commented, "We delivered solid results that were in line or above the outlook we provided in April amid a challenging environment due to the global COVID-19 pandemic, with both Media and Connect executing well. This is a testament to both the commitment and dedication of our teams and the strength of our client relationships.

"Our clients reacted quickly during a time of crisis to provide consumers with essential goods and services, and we also adapted quickly to provide clients with the essential measurement and analytics they need to drive business decisions in a dynamic environment. We took swift action in response to COVID-19 related revenue pressure by instituting greater discipline around operating costs and capital expenditures, enabling us to minimize the impact on EBITDA and free cash flow in the second quarter."

➤Second Quarter 2020 Results

• 2nd quarter revenues were $1,496 million, down 8.1% on a reported basis, or down 5.9% on a constant currency basis, compared to the prior year.
• Nielsen Global Media revenues decreased 5.3% to $811 million on a reported basis, or a decrease of 4.6% on a constant currency basis, compared to the prior year.
• Audience Measurement revenues decreased 3.1% on a reported basis, or a decrease of 2.4% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on sports and non-contracted revenue and ongoing pressure in local television.
• Plan/Optimize revenues decreased 11.1% on a reported basis, or a decrease of 10.3% on a constant currency basis, primarily reflecting the impact of the COVID-19 pandemic on sports, Gracenote auto and short-cycle revenue and ongoing pressure in Telecom.
• Nielsen Global Connect revenues decreased 11.3% to $685 million on a reported basis, or a decrease of 7.4% on a constant currency basis.
• Measure revenues decreased 9.3% on a reported basis, or a decrease of 5.0% on a constant currency basis, reflecting the impact of the COVID-19 pandemic on retail measurement services in markets that are heavy in traditional trade.
• Predict/Activate revenues decreased 15.9% on a reported basis, or a decrease of 13.2% on a constant currency basis, reflecting the impact of the COVID-19 pandemic, particularly in custom insights and innovation, partially offset by the January 2020 acquisition of Precima.
• Net loss for the second quarter was $30 million on a reported basis, compared to net income of $123 million in the second quarter of 2019. Net loss per share on a diluted basis was $0.08 per share, compared to net income per share on a diluted basis of $0.34 per share for the second quarter of 2019. Net loss was impacted by higher restructuring charges, higher depreciation and amortization expense, and the impairment of long-lived assets related to the exit of certain smaller, underperforming markets and non-core businesses primarily in the Media segment.
• Adjusted earnings per share was $0.41 per share, compared to $0.53 per share in the prior year, reflecting lower adjusted EBITDA and higher depreciation and amortization year over year, partially offset by lower taxes.
• Adjusted EBITDA for the second quarter decreased 9.4% to $426 million on a reported basis, or a decrease of 7.6% on a constant currency basis, compared to the prior year.
• Adjusted EBITDA margin decreased 39 basis points to 28.5% on a reported basis, or 51 basis points on a constant currency basis compared to the prior year, reflecting pressures in both segments from the COVID-19 pandemic and investments in Media, partially offset by cost savings.

The reported amounts above were impacted by weaker currencies versus the dollar during the second quarter, which had a 220 basis negative impact on reported revenue growth and a 180 basis negative impact on EBITDA.