Nielsen Reports Third Quarter Revenues Rise 2.5%
October 26, 2016 at 3:07 AM (PT)
NIELSEN HOLDINGS has released third quarter 2016 results. Revenues were $1,570 million for the third quarter of 2016, up 2.5%, or 3.6% on a constant currency basis, compared to the third quarter of 2015.
“Our revenue grew in the third quarter, despite a more challenging environment, highlighting the strength of our balanced portfolio. In the Watch segment, market adoption of Total Audience continues to grow at a healthy clip. Digital Content Ratings are now fully syndicated and the industry is moving forward to a new ratings standard anchored by our Total Audience Measurement system, which is well-positioned to play an important role in the 2017 upfronts,” said CEO MITCH BARNS.
BARNS continued, “In the Buy segment, while emerging markets continued to produce top-line growth, our results in the developed markets were disappointing, particularly in the U.S. Many of our clients are seeking efficiency and productivity in the face of a challenging growth environment. Given these evolving needs, we are realigning our portfolio by exiting non-core services, reallocating resources and accelerating our investments in our strategic initiatives to help our clients grow and to better position our business for the future. In short, our Buy business is working through a process of change that is similar to what we’ve been executing on successfully in our Watch business.”
Net income for the third quarter of 2016 decreased 7.0%, or 8.3% on a constant currency basis, to $132 million, compared to the third quarter of 2015, as solid operating earnings were offset primarily by higher restructuring charges. Net income for the third quarter of 2016 included restructuring charges of $29 million, primarily in our Buy segment. Net income per share on a diluted basis decreased to $0.36, compared to $0.38 for the third quarter of 2015.
Adjusted Net Income for the third quarter of 2016 increased 3.9%, or 3.1% on a constant currency basis, to $266 million compared to the third quarter of 2015. Adjusted Net Income per share on a diluted basis grew 7.2% to $0.74, or 5.7% on a constant currency basis, for the third quarter of 2016 compared to $0.69 in the third quarter of 2015.
Adjusted EBITDA for the third quarter of 2016 increased 4.0%, on a reported and constant currency basis, to $498 million, compared to the third quarter of 2015. Adjusted EBITDA margins grew 43 basis points, or 10 basis points on a constant currency basis, to 31.7%, due to the benefit of our ongoing productivity initiatives and the operating leverage of the business.