Nielsen Second Quarter Revenues Up On Constant Currency Basis
July 28, 2015 at 6:46 AM (PT)
NIELSEN N.V. second quarter 2015 revenues fell 2.2% to $1,559 million due to the impact of foreign exchange but rose 4.8% on a constant currency basis. Adjusted Net Income for the second quarter increased 2.5% to $246 million or 10.3% on a constant currency basis (62 to 66 cents/diluted share).
Revenues in the Buy segment fell 5.35 (up 4.8% on a constant currency basis) to $852 million, while revenues in the Watch segment were up 1.9% (4.7% on a constant currency basis) to $707 million, driven by continued strength in Audience Measurement and Marketing Effectiveness, which grew 5.1% and 21.7%, respectively, on a constant currency basis. Income from continuing operations increased 52.6% to $116 million (103.5% on a constant currency basis), mostly based on fees associated with refinancing during 2014's second quarter and what the company describes as "the benefit of ongoing productivity initiatives."
CEO MITCH BARNS said, “NIELSEN’s second quarter was marked with notable accomplishments which fueled 4.8% constant currency revenue growth and margin expansion across both our Buy and Watch segments. We had new client wins in every region of the world in our Buy business, which grew 4.8% and had its fourth consecutive quarter of margin expansion, both on a constant currency basis. Our Watch segment grew 4.7% on a constant currency basis due to strength in both Audience Measurement and Marketing Effectiveness as we continue to link measurement and analytics to bring greater value to our clients. We have strong momentum around Total Audience Measurement with Digital Content Ratings progressing well towards its fall launch. And by year end, Digital Ad Ratings will be available in 16 markets, covering 95% of global digital advertising spending. We are also pleased with the ongoing integration of eXelate and are increasingly excited about its abilities to serve as the platform by which we can help clients improve the precision of marketing decisions.
“In addition to executing upon our key initiatives, unlocking incremental value for our shareholders also remains a priority. Our strong free cash flow generation helps us achieve this by enabling consistent investment within our own business alongside a growing dividend and a robust share repurchase program.”