The Nielsen Company reported that Q3 revenues were up 11% to 1.19 billion. Part of that gain was from its media measurement businesses, including Nielsen Media Research, where revenues were 372 million, vs. 336 million a year earlier – a gain of 9.6% on a constant currency basis. Revenues for consumer services, the biggest unit, rose 8.6% on a constant currency basis to 690 million. The only decline came at the business media unit, where revenues fell 8.2% to 128 million. Operating income for the entire company fell 13.6% to 77 million. However, the company reported that excluding restructuring costs and several other special expenses, operating income actually rose 13.1%. In his conference call with analysts, CEO David Calhoun expressed confidence that media measurement revenues would continue to grow, with Nielsen Media Research continuing to roll out Local People Meters for TV ratings, but also from the company’s growing business in measuring new media.
Nielsen, formerly VNU, was taken private last year by several private equity funds, including AlpInvest Partners, The Blackstone Group, The Carlyle Group, Hellman & Friedman, Kohlberg Kravis Roberts & Co., and Thomas H. Lee Partners. The company, however, still has public bonds.
TVBR/RBR observations: The bummer is the Business Media unit, hey isn’t that their Trade publciations? Yep, they include R&R, Mediweek, Adweek which has cut a number of weeks out of their print schedule. Key word here is print, paper, ink, postage. Some still printing on paper in an electronic world. Go figure a company that is moving in the business world of electronic and still selling buggy whips. Humm… Wonder how Wall Street will view Nielsen once they do incorporate in USA and attempt to go public. Word to Nielsen, you are only as good as your weakest link.
