Nielsen Reports 1Q Revenue Mixed, Profits Up

Nielsen N.V. Wednesday announced 1Q 2015 results and that its Board of Directors approved an increase in the company’s quarterly cash dividend of 12% to $0.28 per common share.

Revenues were $1,458 million, down 2.1% due to the impact of foreign exchange but up 4.4% on a constant currency basis, compared to the first quarter of 2014.

“Nielsen’s first quarter results again illustrate the consistency of our business model and strong execution, with 4.4% total company and 10.0% emerging markets revenue growth on a constant currency basis. These results reflect the 35th consecutive quarter of constant currency revenue growth. In addition, we were pleased to raise our quarterly dividend 12%, as we continue to deliver on our commitment to drive ongoing shareholder value,” said Mitch Barns, Chief Executive Officer of Nielsen.

Mitch Barns

Barns continued, “As we look ahead, we remain focused on, first, providing our clients with the solutions they need for Total Audience Measurement and second, guiding the industry towards adoption of a new metric that captures more of the viewing in the rapidly fragmenting media world in which we operate. In the Buy business, we made significant progress on our ecommerce initiatives in China. We now have partnerships with the four largest e-tailers in China, enabling us to measure up to 70% of FMCG online retail sales in the world’s largest and fastest growing market for ecommerce, the latest form of fragmentation in the retail world.”

Income from continuing operations for the first quarter increased by 14.5% to $63 million, an increase of 53.7% on a constant currency basis, compared to the first quarter of 2014. The increase is driven by lower restructuring charges and the benefit of ongoing productivity initiatives. Income from continuing operations per share on a diluted basis was $0.17 compared to $0.15 in the first quarter of 2014.

The Board of Directors approved an increase in the company’s quarterly cash dividend of 12% to $0.28 per common share, payable on June 18, 2015 to shareholders of record on June 4, 2015.

On Wednesda conference call with anaylysts, Barns said Nielsen is making “good progress” on its efforts to launch a digital audio ratings service. But, he offered no timetable for when the product would formally debut.

More than 30 broadcasters and third-party vendors have integrated Nielsen’s software into their apps and media players and some companies have begun receiving streaming ratings data. “That's a great sign of progress,” Barns said. “But it’s not across the line yet.”