Nielsen Reports Full Year Revenue Increased 4.1 Percent

• 2021 revenues of $3.5 billion increased 4.1% on a reported basis, 3.4% on a constant currency basis & 4.9% organic constant currency, above guidance- Net income per share of $1.53 (diluted, from continuing operations) in 2021; Adjusted EPS of $1.81, above guidance
• Other key metrics at the high end or above guidance ranges
• Executed on key product milestones in 2021; on track to deliver Nielsen ONE cross-media measurement solution in 2022
• 2022 guidance issued; progressing toward medium-term targets
• Board of Directors approves $1 billion share repurchase authorization

Nielsen Holdings plc announced fourth quarter and full year 2021 results. For the full year, revenues increased 4.1% on a reported basis, 3.4% on a constant currency basis, and 4.9% on an organic constant currency basis, above guidance. Adjusted EBITDA and Adjusted EPS exceeded the guidance range, and Free Cash Flow was at the high end of the guidance range. Nielsen also issued 2022 guidance and announced a $1 billion share repurchase authorization.

David Kenney

David Kenny, Chief Executive Officer, commented, "We delivered strong results in 2021. We successfully sold Nielsen Global Connect, hit significant product milestones, and exceeded all of our original 2021 guidance metrics despite facing some unanticipated challenges. We are strongly positioned within the media ecosystem, with growing relevance as audiences shift to streaming, and we are delivering value to clients across our three essential solutions. We made measurable progress toward becoming a digital-first company, and our strategy aligns with where growth in the industry is coming from. We are piloting the first iteration of Nielsen ONE, which we launched in January, with a representative group of clients across media buyers and sellers and feedback has been positive."

"We also made progress on strengthening our balance sheet, reducing our net debt leverage by over half a turn in 2021. We now have the flexibility to return more capital to shareholders while continuing to invest in organic growth initiatives and pursue strategic, tuck-in M&A. Our $1 billion share repurchase authorization reflects our Board's confidence in both our short and long-term growth prospects and enables us to deliver value to our shareholders."

Fourth Quarter 2021 Results

• Fourth quarter revenues of $894 million increased 2.5% on a reported basis, 2.9% on a constant currency basis, and 4.7% on an organic constant currency basis compared to the prior year period.
• Measurement revenues of $647 million increased 3.7% on a reported basis, 4.0% on a constant currency basis, and 5.2% on an organic constant currency basis compared to the prior year period. Overall growth was solid, with national and digital measurement products showing strength, and a third consecutive quarter of modest growth in local products.
• Impact / Content revenues of $247 million decreased 0.4% on a reported basis, were flat on a constant currency basis, and increased 3.4% on an organic constant currency basis compared to the prior year period. Revenue in Impact grew in the high single digits on an organic constant currency basis, driven by growth in short-cycle revenue and recovery in the Sports business, offset in part by a timing-related decline in Content.
• Net income from continuing operations attributable to Nielsen shareholders for the fourth quarter was $242 million, compared to $8 million in the fourth quarter of 2020. Net income from continuing operations per share on a diluted basis for the fourth quarter was $0.67, compared to $0.02 for the fourth quarter of 2020. The improvement in net income from continuing operations was driven by a tax benefit in the quarter due to discrete items (primarily the utilization of foreign tax credits, benefits associated with closing audits and open tax years, and a reduction in deferred tax liabilities) and lower interest expense, partially offset by the increased costs to operate as a standalone company without Global Connect. In addition, Nielsen recorded a non-cash charge of $97 million, or $0.27 per share, related to impairment of intangible assets in the fourth quarter 2020.
• Reported EPS of $0.59 includes EPS of $0.67 from continuing operations and EPS of $(0.08) from discontinued operations.
• Adjusted EPS was $0.46 for the fourth quarter, compared to $0.32 in the prior year period, reflecting a lower tax rate year over year, offset in part by lower Adjusted EBITDA and higher depreciation & amortization
• Adjusted EBITDA for the fourth quarter was $351 million, compared to $380 million in the fourth quarter of 2020, down 7.6% on a reported basis and 7.4% on a constant currency basis.
• As expected, Adjusted EBITDA margin of 39.3% decreased 432 basis points on a reported basis, or a decrease of 435 basis points on a constant currency basis, compared to the prior year, reflecting the return of the temporary costs savings realized in 2020 in response to the COVID-19 pandemic and investments in growth initiatives, partially offset by the strong revenue performance in the quarter and benefits from the 2020 optimization plan.