Nielsen Reports Fourth Quarter And Full Year 2012 Results And Announces Dividend

Financials

NIELSEN HOLDINGS has released financial results for the fourth quarter and year ended DECEMBER 31st, 2012.

"NIELSEN's fourth-quarter results showed strong growth in recurring revenue and continued margin expansion," said CEO DAVID CALHOUN. "Our full-year performance demonstrated the overall resilience of our business despite a tougher environment for corporate spending. We remain focused on delivering value to clients, investing to grow our business and expanding our capabilities. We are pleased to deliver enhanced shareholder value as we begin paying a quarterly dividend."

Fourth-Quarter 2012 Operating Results

Revenues for the fourth quarter increased 3% to $1,464 million (4% on a constant currency basis) compared to the fourth quarter of 2011. "Our revenue performance was driven by a 3% increase within our Buy segment (3% on a constant currency basis), a 5% increase within our Watch segment (5% on a constant currency basis) and a 19% decrease in our Expositions segment (19% on a constant currency basis)," wrote the Company.

Adjusted EBITDA for the fourth quarter increased 6% to $457 million (6% on a constant currency basis), compared to the fourth quarter of 2011.

Net income for the fourth quarter decreased to $39 million compared to $95 million in the fourth quarter of 2011. The 2012 results included charges of $70 million, net of tax, related to the redemption of 11.50% Senior Notes due 2016 and the prepayment of the 8.50% Senior Secured Term Loan due 2017. Net income per share, on a diluted basis, was $0.11 compared to $0.26 in the fourth quarter of 2011.

Adjusted Net Income for the fourth quarter increased to $234 million compared to $190 million in the fourth quarter of 2011. Adjusted Net Income per share was $0.62 compared to $0.51 in the fourth quarter of 2011.

Year Ended December 31st, 2012 Operating Results

Revenues for full year 2012 increased 1% to $5,612 million, or 4% on a constant currency basis compared to 2011. "Revenues within our Buy segment were flat (4% increase on a constant currency basis), revenues within our Watch segment increased 3% (4% on a constant currency basis) and revenues within our Expositions segment increased 2% (2% on a constant currency basis)," wrote NIELSEN.

Adjusted EBITDA for full year 2012 increased 4% to $1,602 million, or 6% on a constant currency basis compared to 2011.

Net income for full year 2012 was $273 million compared to $86 million in 2011. The 2012 results included charges of $70 million, net of tax, related to the redemption of 11.50% Senior Notes due 2016 and the prepayment of the 8.50% Senior Secured Term Loan due 2017. The 2011 results included charges of $206 million, net of tax, related to the redemption and prepayment of debt with IPO proceeds. Net income per share, on a diluted basis, was $0.75 compared to $0.24 in 2011.

Adjusted Net Income for full year 2012 increased to $704 million compared to $590 million in 2011. Adjusted Net Income per share was $1.87 compared to $1.61 in 2011.

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