Nielsen Q1 revenue up 3% (audio)


NielsenNielsen’s Q1 revenues grew 3% to $1,340 million, up 4% from Q4 2011. Adjusted EBITDA for the quarter grew 4% to $332 million, up 5% from Q4 2011.

Net income for the quarter was $25 million as compared to a net loss of $181 million in Q1 2011.

Growth was driven by a 3% increase within their Buy segment (5% vs. Q4 2011), a 3% increase within their Watch segment (3% vs. Q4 2011) and a 9% increase within their Expositions segment (9% vs. Q4 2011).

Adjusted EBITDA for the first quarter increased 4% to $332 million, or 5% vs. Q4 2011, as they continue to strategically reinvest in the expansion of services globally.

Net income for Q1 was $25 million compared to a net loss of $181 million in Q1 2011, driven primarily by Q1 2011 charges of $206 million, net of tax, associated with the IPO. Net income per share, on a diluted basis, was $0.07 compared to a net loss per share of $0.55 in Q1 2011.

Adjusted Net Income for Q1 increased to $113 million compared to $64 million in Q1 2011, driven primarily by a net $34 million reduction in interest expense resulting from debt retirements and growth in Adjusted EBITDA. Adjusted Net Income per share was $0.30 compared to $0.19 in Q1 2011.

“Nielsen delivered solid first quarter results, with continued growth in developing markets and steady performance across our businesses,” said David Calhoun, Nielsen CEO. “We have great confidence about our investments in growth, our ability to deliver value to clients and our outlook for 2012.”

Listen to Calhoun discuss the numbers and provide an update on key initiatives, below:

[audio:Nielsen-Q1-042512.mp3|titles=Nielsen Q1]

As of 3/31, cash balances were $295 million and gross debt was $6,568 million, excluding the $288 million mandatory convertible subordinated bonds due 2013. Net debt (gross debt less cash and cash equivalents) at the end of the quarter was $6,273 million and our net debt leverage ratio was 4.0x. Capital expenditures were $82 million Q1 2012 as compared to $52 million for Q1 2011.

In February Nielsen executed a new $1.2 billion five-year term loan, the proceeds from which were applied to refinance the majority of its existing 2013 bank maturities. As of 3/31, more than 80% of the company’s debt has a maturity of 2016 or beyond.