Client spending cuts squeeze Nielsen's first-quarter revenue
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US-- Nielsen has posted a 7% dip in first-quarter revenue, with finance chief Brian West saying there has been no let-up in the pressure on clients' discretionary spending.
Group revenue for the three months ended 31 March was $1.1bn, compared to $1.2bn last year. Stripping out the effects of exchange rate fluctuations, sales showed a slight increase of just over 1%.
Consumer services revenue was flat, on a constant currency basis, at $597m. “Retail measurement and consumer panel services continue to show growth, albeit in low single digits,” West said. “What offsets this growth are the more discretionary parts.”
Customised research and Bases, the new product sales forecasting business, were both down year-on-year. Bases reported a double-digit decline in revenue – affected not only by the pressure on clients to reduce discretionary spend, but also by the slowdown in new product launches, with packaged goods companies now more focused on optimising what is already in the market, West said.
Operating income for the consumer division was $50m, excluding $3m in severance payments tied to employee terminations. Last year's figure was $46m.
Media research revenue was up 12% to $451m thanks to growth of 16% within the TV measurement business, including first-time Q1 contributions from acquisitions IAG and AGB.
Entertainment and online revenues were down 11% and 7% respectively – the former due to lower studio testing and the latter because of a decline in US sales. Operating income for the division was $74m, versus $68m last year.
The remainder of Nielsen's revenue came from its business media publications and events division, which was down 30.7% to $85m.
(NB: all the above referenced growth rates are on a constant currency basis, unless otherwise stated.)
• In other news today, the New York Times reports that video site Hulu has written to Nielsen to complain over figures showing a decline in its unique visitors, from 9.5m in February to 7.4m in April.
Author: Brian Tarran
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