Nielsen Revenues Off, Income Rises In Second Quarter

Q2 Results

NIELSEN HOLDINGS plc second-quarter 2019 revenues fell 1.2% year-to-year to $1.628 billion but rose 1.2% on a constant currency basis. The number was boosted by a 1.1% reported, 2.0% constant currency increase in revenues to $856 million for the NIELSEN Global Media division, offset by a 3.5% decrease (0.4% increase on a constant currency basis) in NIELSEN Global Connect revenues to $772 million. Net income increased 70.8% (83.6% constant currency) to $123 million (34 cents/diluted share).

CEO DAVID KENNY said, "NIELSEN has evolved significantly over the past year. Our second-quarter results were once again slightly ahead of our expectations. We continue to make progress on our transformation into a product driven technology company, making faster, bolder decisions that enhance value for our clients. We were pleased with revenue trends in both Media and Connect and have also demonstrated progress in moving towards a modern architecture, highlighted by the successful transition of our National TV measurement processing to the cloud.  We have aligned our organization around two industry-leading businesses serving the media and fast moving consumer goods industries that are capable of greater profitability, higher cash flow conversion, and delivering strong shareholder value.

"The strategic review continues and the Board is focused on completing the process by the third quarter earnings release," he continued. "We will discuss the outcome and go-forward plan at the conclusion of the process. In addition, we remain focused on executing on our growth strategies and positioning the company to maximize value for all of our shareholders."

The company reiterated its 2019 guidance of flat to +1/5% revenue, Adjusted EBITDA of $1.8-$1.9 billion, and $525-$575 million free cash flow for the full year; Adjusted earnings per share guidance has been increased to $1.70-$1.80 from the previous $1.63-$1.77.

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