Nielsen reported higher profits as cost cuts made during the pandemic became permanent and it spun off money-losing operations.
The company is under pressure because it under-reported viewing during the pandemic because of the way it managed the homes in its sample. Because it couldn’t visit those homes--or tried to manage them remotely--homes were included in the sample that shouldn’t have, resulting in lower viewing numbers. It also lost participating homes, making the sample less representative.
On its the company's earnings call, CEO David Kenny said that the company has been able to return to its normal panel maintenance procedures and has added to panel size during the quarter. He added that Nielsen was committed to the Media Rating Council's audit and accreditation process.
Nielsen said second quarter net income was $76 million a share, or 21 cents a share, compared to a loss of $30 million, or 8 cents a share, a year ago.
The company said that net income from continuing operations increased to $86 million from $28 million a year ago. The company is spun off Global Connect business, making that a discontinued operation in its 2020 financials.
Revenue rose 6.2% to $861 million.
Audience measurement revenues were up 4.3% to $629 million. The company said local pressures have subsided and that local revenue was up for the first time in 10 quarter. Nielsen expects local revenues to be flat for the year.
Outcomes & Content revenue rose 11.5% to $232 million.
Nielsen raised the low end of its full- year guidance for revenue. It now says revenue should be up 2.5% to 3% compared to 2% to 3% previously. It narrowed its guidance for adjusted earnings per share to $1.54 to $1.61 a share from $1.47 a share to $1.58 a share.
“Our quarterly financial results demonstrate our continued strategic and operational transformation, as the global media ecosystem evolves. We have increased confidence in our full-year outlook, which is reflected in our updated 2021 guidance. We continue to see healthy renewals from existing clients, growing interest from new clients, and steady progress in our global product development,” Kenny said in a statement. “We are executing well against our strategy and roadmap to create long-term value and are pleased with steady progress again this quarter."
