Nielsen Company Sees 7% Gain in Q3 Revenues

The Nielsen Company B.V., said its financial results for the quarter and nine months ended Sept.30, 2010.

Revenues for the three months ended Sept. 30, 2010 were $1.29 billion, an increase of 5% over reported revenues for the three months ended Sept. 30, 2009 of $1.23 billion.  Excluding the impact of currency fluctuations*, revenues for the three months increased 7%.  

Operating income for the three months ended Sept. 30, 2010 was $201 million compared to an operating loss of $326 million for the three months ended Sept. 30, 2009.  The 2010 results included $11 million of charges relating to restructuring costs. The 2009 results included $524 million of charges relating to the Sept. 2009 impairment of goodwill and other intangible assets as well as restructuring.  Adjusting for these items and excluding the impact of currency fluctuations*, operating income increased 10%.

Revenues for the nine months ended Sept. 30, 2010 were $3.76 billion, an increase of 7% over reported revenues for the nine months ended Sept.30, 2009 of $3.51 billion.  Excluding the impact of currency fluctuations*, revenues for the nine months increased 6%.  

Operating income for the nine months ended Sept. 30, 2010 was $515 million compared to an operating loss of $42 million for the nine months ended Sept. 30, 2009.  The 2010 results included $33 million of charges relating to restructuring costs. The 2009 results included $533 million of charges relating to the September 2009 impairment of goodwill and other intangible assets as well as restructuring.  Adjusting for these items, operating income, on a constant currency basis*, increased 10%.

Covenant earnings before interest, taxes, depreciation and amortization and other adjustments permitted under our senior secured credit facilities (“Covenant EBITDA”) was $1.42 billion for the twelve months ended September 30, 2010.  Covenant EBITDA is a non – GAAP measure.  See “Covenant EBITDA” below for a reconciliation of Income from continuing operations of $191 million for the twelve months ended Sept. 30, 2010 to Covenant EBITDA.

As of Sept. 30, 2010, total debt was $8.57 billion, and cash balances were $420 million. Capital expenditures were $226 million for the nine months ended Sept. 30, 2010, compared with $204 million for the nine months ended Sept. 30, 2009.