Nielsen Holdings B.V., which is preparing to raise in an IPO, expects revenues for the fiscal year ended Dec. 31, 2010 to to have been between $5.11 billion and $5.13 billion, an increase of between 6.3% and 6.7% from revenues of $4.80 billion on an as reported basis and an increase of between 5.8% and 6.2% on a constant currency basis.


Constant currency revenue growth represents the percentage growth in revenues from the prior year period removing the positive and negative impacts of changes in foreign currency exchange rates. The estimated increase in revenues for the year is primarily related to continued geographic expansion and increased spending from both new and existing customers on information and analytical services within both Nielsen’s Buy and Watch segments. 

 

Nielsen’s revenue performance and related trends both on a full-year basis and within the fourth quarter were consistent with those noted within Nielsen’s “Management’s Discussion and Analysis” for the nine months ended Sept. 30, 2010 included in its registration statement on Form S-1 as filed with the Securities and Exchange Commission.

 
Operating income, as calculated in accordance with generally accepted accounting principles (“GAAP”), for the fiscal year ended Dec. 31, 2010 is expected to have been between $715 million and $735 million.

 

These results are primarily driven by the growth of revenues in the Watch and Buy segments, as well as cost savings from productivity initiatives, offset in part by investments in technology infrastructure initiatives.

As of Dec. 31, 2010, Nielsen had approximately $400 million of cash and cash equivalents and approximately $8.60 billion of indebtedness outstanding. During the fourth quarter of 2010, Nielsen issued $1.08 billion principal amount of 7¾% notes due in 2018 and redeemed all $870 million principal amount of its 10% senior notes due 2014 and also redeemed all €150 million principal amount of its 9% senior notes also due in 2014.


Nielsen has provided a range, rather than a specific amount, for the preliminary results described above primarily because its financial closing procedures for the year ended Dec. 31, 2010 are not yet complete and, as a result, Nielsen expects that its final results upon completion of its closing procedures may vary from the preliminary estimates within the ranges as described above.

 
Nielsen expects to complete its closing procedures with respect to the year ended December 31, 2010 in February 2011.