Solid Q2 growth, but Nielsen sees ‘softness' in United States

US-- Nielsen reported a solid set of numbers for the second quarter today, with revenue up 12% to $1.3bn – but finance chief Brian West warned that the research giant was starting to feel the effects of the US economic slowdown in its consumer services arm.

This was showing as softer growth in some of the “discretionary” services offered through the division, which works with FMCG retailers, manufacturers and advertisers.

Bases, its NPD forecasting and optimisation product, provided the best example of this, said West. The exception was analytic consulting – recording sales up “well over 20%” he said.

The low single-digit growth seen overall in the US was far removed from the double-digit sales increases witnessed in Latin America and other emerging markets. Globally consumer services revenue was up 14% to $746m, or 5.8% on a constant currency basis, while operating income was $83m compared to $52m the prior year.

In media, revenue growth was 13.3% to $426m. Mobile researcher Telephia added $15m in revenue following its acquisition last August; online grew 19% to $32m, and media measurement was up 15% to $355m – all of which helped offset a 6.7% decrease in entertainment services revenue. Operating income for the media division as a whole was $77m.

Nielsen's business publications and events division generated $131m in revenue.

Author: Brian Tarran

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