Nielsen Reports 1Q Revenue Increase

• Completed the sale of Nielsen Global Connect on March 5, 2021; reported as discontinued operations as of Q1'21
• Revenues of $863 million increased 2.5% on a reported basis, 1.3% on a constant currency basis & 2.3% organic
• Net income per share of $0.29 (diluted, from continuing operations); Adjusted EPS of $0.47

Today, Nielsen Holdings plc announced its results for the quarter ended March 31, 2021. These results reflect the March 5, 2021 sale of the Global Connect business for $2.4 billion in net proceeds, which resulted in a $542 million preliminary gain on sale, net of taxes, recognized in the quarter. Of the net proceeds, $2.28 billion were used for debt reduction in March and April 2021. Beginning in the first quarter of 2021, Global Connect results were reclassified to discontinued operations for all periods presented.

David Kenny

David Kenny, Chief Executive Officer, commented, "We delivered a solid first quarter, as our teams executed incredibly well. We closed on the sale of Global Connect in March and are now singularly focused as the global essential data, measurement, and analytics provider for the entire media ecosystem. We are investing in our future and we are well-positioned to drive new growth from new solutions across all of our end markets globally. In particular, we are pleased with the advances we've made in Audience Measurement, Outcomes and Gracenote Content Services. We are executing as planned and we are increasing key elements of our 2021 guidance."

First Quarter 2021 Results

• First quarter revenues increased 2.5% to $863 million on a reported basis, 1.3% on a constant currency basis, and 2.3% on an organic basis compared to the prior year.
• Audience Measurement revenues of $632 million increased 2.8% on a reported basis, 1.9% on a constant currency basis, and 2.3% on an organic basis compared to the prior year, with overall solid growth, most notably in digital measurement and with local pressures subsiding.
• Outcomes & Content revenues of $231 million increased 1.8% on a reported basis, decreased 0.4% on a constant currency basis, and grew 2.2% on an organic basis compared to the prior year, driven in part by improving trends in short-cycle revenues and solid growth in Content.
• Net income from continuing operations increased 89% to $106 million, compared to $56 million in the first quarter of 2020. Net income from continuing operations per share on a diluted basis for the first quarter was $0.29, compared to $0.16 for the first quarter of 2020. Net income from continuing operations was driven by strong revenue performance, the benefit of permanent cost actions from the 2020 optimization plan, lower depreciation and amortization expense and lower restructuring charges.
• Adjusted earnings per share on a New Nielsen basis, which assumes the Connect transaction closed on January 1, 2020, was $0.47 for the first quarter, compared to $0.36 per share in the prior year period, reflecting higher adjusted EBITDA and lower depreciation and amortization expense year over year.
• Adjusted EBITDA was $388 million, compared to $326 million in the first quarter of 2020, up 19.0% on a reported basis and 18.3% on a constant currency basis, as compared to the prior year.
• Adjusted EBITDA margin of 45.0% increased 624 basis points on a reported basis, or an increase of 646 basis points on a constant currency basis, compared to the prior year, reflecting the strong revenue performance and the benefit of permanent cost actions implemented during the second half of 2020.