Nielsen's first-quarter revenues were down 2.9% to $1.6 billion, with net income to the company down 40% to $43 million, due to “higher restructuring charges, higher depreciation and amortization and the phasing of strategic initiatives.”
Most of the revenue decline was attributed to its marketing-services losses. Its Connect unit sank 6.2% to $737 million, with its Media unit -- including audience measurement -- virtually flat, up 0.2% to $826 million. A large part of its Media unit -- audience measurement -- rose 1.5% to $605 million.
Taking out currency fluctuations made for better results with Connect, just down 0.7%; with its core audience measurement unit up 2.2%.
Todd Juenger, media analyst of Bernstein Research, says there were no surprises, as much of this was expected: “Operationally, how refreshing to once again have a clean, in-line quarter,” adding “at this point, the conclusion of the strategic review must surely be near.”
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In early Tuesday morning trading, Nielsen stock was trading virtually flat at $25.38.
CNBC reported earlier this month that two private-equity groups are considering bids for Nielsen: Advent International, working with Goldman Sachs Group and Apollo Global Management. At the same time, earlier reports said Apollo, as well as the Blackstone Group, was losing interest in Nielsen.
Nielsen began holding management presentations for potential buyers in January after naming David Kenny CEO.
I am actually coming to feel sorry for David Kenny, Nielsen's CEO.
Sadly, as Nielsen approaches its 100th Anniversary, it seems to
have lost its memory. That's bad for employees and clients.
One might even think Nielsen is suffering its own "Curse of the Bambino." It's hard to remember anyone with "Babe Ruth" status at Nielsen with the exception of Arthur Nielsen, Sr. & Jr., Gale Metzger, Ed Schillmoeller and Erwin Ephron.
[I'd be remiss if I did not tip my hat to those within Nielsen's rank & file, like Pat McDonough & Glenn Enoch,
who worked earnestly, wisely and kindly to serve me & NBC.]
The real danger in this situation, Gale Metzger, Co-Founder of Statistical Research, Inc., told MediaPost's Joe Mandese, is the loss of "institutional" history in the TV ratings business,"and the knowledge of all the errors we made in the past and the risk of reliving them again."
For evidence-based reasons, Metzger has been no big fan of the 21st Century direction of the TV ratings business -- and especially of a Nielsen Co. controlled by private equity firms more interested in cash flow & profits
than research quality. ---> Agreed!
#NielsenRevenueSinks #NielsenStrategicReview #ProfitsOverQuality #CaveatEmptor