Actionable news
0
All posts from Actionable news
Actionable news in NLSN: NIELSEN N.V.,

Nielsen Holdings: Quarter 2016 Results And Increases Quarterly Dividend 11%

The following excerpt is from the company's SEC filing.

Nielsen Holdings plc (NYSE: NLSN) today announced first quarter 2016 results and that its Board of Directors approved an increase in the company’s quarterly cash dividend of 11% to $0.31 per share.

Revenues were $1,487 million for the first quarter of 2016, up 2.0%, or 5.2% on a constant currency basis, compared to the first quarter of 2015, due to the solid performance of both its Buy and Watch businesses.

Adjusted Net Income for the first quarter of 2016 of $187 million was up 8.1%, or 9.4% on a constant currency basis, as compared to the first quarter of 2015. Adjusted Net Income per share on a diluted basis grew 10.9% to $0.51 for the first quarter of 2016 compared to $0.46 in the first quarter of 2015.

“Nielsen’s strong first quarter results were underpinned by our steady and resilient business model, which drove 5.2% constant currency revenue growth, continued margin expansion and strong earnings growth. Fueled by 10.0% growth in emerging markets and growing momentum with retailers globally, our Buy segment grew 4.3% on a constant currency basis. Our Watch segment grew 6.3% on a constant currency basis due to meaningful progress with our Total Audience Measurement framework and notable growth with our precision targeting and analytical solutions within Marketing Effectiveness. In addition, we are pleased to announce an 11% increase to our quarterly dividend as we continue to deliver on our ongoing commitment to create shareholder value through our balanced capital allocation approach,” said Mitch Barns, Chief Executive Officer at Nielsen.

Barns continued, “As we look to the year ahead, our business will be driven by three key factors. One, we are leading industry discussions on the adoption of a new currency metric fueled by our Total Audience Measurement framework. Two, the value of audience segmentation and precision marketing is increasing and our unique set of analytic capabilities, bolstered by our recent launch of the Nielsen Marketing Cloud, position us well to provide clients with metrics to help improve performance. And three, we continue to make progress on our plans for a platform-based system that aligns and connects our wide array of measurement and analytics data for our fast-moving consumer goods clients.”

Net income for the first quarter of 2016 increased 60.3% to $101 million, or 62.9% on a constant currency basis, compared to the first quarter of 2015 due to strong revenue growth, ongoing productivity initiatives and the operating leverage of the business. Net income for the first quarter of 2015 was negatively impacted by $26 million in net foreign currency exchange transaction losses, compared with similar losses of $1 million in the first quarter of 2016. Net income per share, on a diluted basis, was $0.27 for the first quarter of 2016 compared to $0.17 in the first quarter of 2015.

Adjusted EBITDA for the first quarter of 2016 increased 5.8% to $402 million, or 7.2% on a constant currency basis compared to the first quarter of 2015. As a percentage of revenues, Adjusted EBITDA grew 97 basis points to 27.0%, and grew 49 basis points on a constant currency basis, due to the benefit of our ongoing productivity initiatives and the operating leverage of the business. Buy Adjusted EBITDA margins increased 60 basis points or 43 basis points on a constant currency basis, to 14.4%. Watch Adjusted EBITDA margins grew 68 basis points or 38 basis points on a constant currency basis, to 42.8%.

Revenues within the Buy segment decreased 0.6% to $793 million due to the impact of foreign exchange, but increased 4.3% on a constant currency basis. Buy revenues in developed markets grew 2.0% on a constant currency basis due to modest strength in Europe and continued traction with retailer clients. Buy emerging markets revenues grew 10.0% on a constant currency basis as Nielsen’s unparalleled global footprint remains a core competitive advantage for both local and multinational clients.

Revenues within the Watch segment increased 5.2%, or 6.3% on a constant currency basis, to $694 million. Audience Measurement of Video and Text revenues increased 7.5% on a constant currency basis due to the continued client adoption of the company’s Total Audience Measurement framework, and continued investments. Audio revenues grew 0.8% on a constant currency basis, on par with expectations. Marketing Effectiveness had another strong quarter, growing revenues by 28.8% on a constant currency basis due to

Page 1 of 6

’ growing

demand for our

marketing ROI and precision targeting tools and investments. Other Watch revenues decreased 18.6

due to the sale of the National Research Group, Inc. which was completed in the fourth quarter of 2015

Excluding Other Watch, our Watch segment grew 8.0% on a constant currency basis.

Financial Position

As of March 31, 2016, Nielsen’s cash balances were $432 million and gross debt was $7,660 million. Net debt (gross debt less cash and cash equivalents) was $7,228 million and our net debt leverage ratio was 3.84x at the end of the quarter. Net capital expenditures were $109 million for the first quarter of 2016 as compared to $102 million in the first quarter of 2015.

Cash flow from operations decreased to $87 million for the first quarter of 2016 from $101...


More