With CEO Mitch Barns calling 2015 “a banner year” with the rollout of
Nielsen Total Audience Measurement and other tech developments, Nielsen
reported revenue growth of 5.6% on a constant currency basis, compared to the
fourth quarter of 2014.
Word came during the company’s results call on Thursday. On a reported
basis, Nielsen’s revenue dipped 0.6% in the fourth quarter to $1.624 million,
due to the impact of foreign exchange rates.
The company’s audio measurement business decreased 6.9% on a constant
currency basis due to the impact of delivery timing during the quarter. “The
timing of some deliveries were realized in the third quarter which did not
repeat in the fourth quarter,” chief financial officer Jamere Jackson explained
Thursday morning, meaning that ratings payments came due for a
higher-than-normal number of its clients during Q3. “Our deliveries do not
always sync up with the quarterly calendar, causing our audio business to
appear lumpy,” Jackson said. That unevenness is evident in how much Nielsen
Audio billed in the third quarter ($141 million) compared to the fourth quarter
($122 million). However for the full year 2015, the company’s audio business
grew 1.2% on a constant currency basis.
“In 2015, the highly profitable audio business delivered low-single-digit
revenue growth, outstanding margins and strong free cash flow,” Jamere said.
Nielsen’s Watch segment, which includes its radio and TV measurement
business, grew 5.2% during the quarter on a constant currency basis to $745 million.
Video and text audience measurement revenue was up 7.6%. Marketing
effectiveness, the division that produces ROI studies for media buyers and
sellers through Nielsen Catalina Solutions, grew a whopping 31.3%.
Nielsen reported full-year 2015 revenues of $6.172 billion, down 1.8% due
to the impact of foreign exchange rates, but up 5.0% on a constant currency
basis, compared to 2014.
“[2015] was a banner year for our company with the rollout of Nielsen Total
Audience Measurement, new client wins across both our Watch and Buy segments
and the launch of the Nielsen enterprise marketing platform driven by our
acquisition of eXelate,” Barns said. “We look forward in 2016 with confidence.”
CBS Radio Eyes 2016 Political Ad Profits.
After changing its radio management team last year, CBS is eyeing 2016 as a
year of expanded profit margins and revenue growth for the division, aided by
what it sees as a record year for political advertising. “You will see radio
build sequentially,” COO Joe Ianello told investors yesterday during the
company’s fourth-quarter earnings call.
Political dollars will be a primary driver of that growth, he said. And
while radio won’t see the enormous election cash infusion that the company’s
local television stations are likely to generate, “there will certainly be a
benefit” for the radio division, Ianello said.
During a call dominated by talk about the media giant’s top-rated network
TV business and new initiatives such as the All Access video-on-demand
streaming service, Ianello reminded investors of what radio brings to the table
as a “low capital intensive business” that generates “significant cash flow.”
He also revealed that CBS adjusted the book value of its radio business, taking
a non-cash impairment charge of $297 million in the quarter, net of tax. “This
is an accounting move that doesn’t limit our belief in the business as a high
margin vehicle that throws off a lot of cash for our shareholders,” president,
CEO and newly named chairman Les Moonves explained.
CBS posted its highest-ever quarter in revenue, up 6% to a record-setting
$3.9 billion, which the company attributed to higher content licensing and
distribution revenues and a 1% increase in advertising revenues. “We had a
terrific fourth quarter, and CBS is now in position to build strong momentum
throughout 2016,” Moonves said.
Local broadcasting revenues declined 8.4% to $719 million during Q4, with
CBS Television Stations down 11%, and CBS Radio off 5%. Lower political
advertising was a factor for both divisions.
For the full year, total CBS revenues grew 1% to $13.89 billion, driven by
a 15% increase in affiliate and subscription fees, reflecting higher rates, as
well as increased revenues from pay-per-view boxing events. Advertising
revenues decreased 3% for the full year.
No comments:
Post a Comment