Nielsen's Buy business unit -- its market data business for advertisers -- slipped 1% in revenue to $793 million, and its Nielsen Watch unit -- its traditional media and digital media measuring business -- was 5% higher at $694 million.
Nielsen says its first-quarter net income was boosted by favorable comparisons to year-ago results, when there were net foreign currency exchange transaction losses. Midday Wednesday trading of Nielsen’s stock was down 2.4% to $52.68.
Mitch Barns, CEO at Nielsen, said in an earnings release that Nielsen is “leading industry discussions on the adoption of a new currency metric fueled by our Total Audience Measurement framework.” Total Audience looks to roll up all TV/video viewing in one measurement service.
Todd Juenger, senior media analyst of Bernstein Research, says in a research note that he isn’t “expecting a significant or sustainable revenue acceleration from the adoption of Total Audience.”
He added: “Nielsen's main customers, the TV networks, aren't going to pay extra for it. It simply increases our confidence Nielsen can continue to renew their long-term contracts, when they come up, at the same mid-single [digit percentage increases] annual increases they always have.”