Mixed results send Nielsen’s share price up
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Mixed results send Nielsen’s share price up

Last week saw global information, data, and measurement company Nielsen Holdings report a mixed bag of quarterly earnings. The company beat analysts’ expectations on earnings, but missed on revenue. Its margins improved, but it lowered its growth outlook for the year. It has a history of facing change head on – but the entertainment landscape in which it is best known (as the surveyor of global television watching habits) is changing at an unprecedented pace. Nonetheless, investors weighed the information released and liked what they saw – the company’s share price rose by as much as 3.3% on the day.

Nielsen’s earning results sent its share price up last week.

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SOURCE: Yahoo Finance

Choosing to address investors’ fears for the company head on, Nielsen’s CEO, Mitch Barns, opened the earnings call by paying homage to the past. He said:

“We see change as a source of opportunity even if it comes with challenges. In fact, all throughout our history, we captured new growth opportunities by responding to market changes with resolve and innovation. Faced with an unprecedented pace of change in both Watch and Buy, we’re following that same tradition today. Leveraging change is a means for progress by innovating the services we provide to our clients and driving value for our shareholders. Our mission is to provide a clear and complete understanding of consumers and markets. That has not changed. But the way we do it is changing rapidly and in exciting ways, and that will continue in the years ahead.”

In a move that speaks to the truth of Barns’ statement, Nielsen announced that it would add viewers that stream content via Hulu and YouTube TV into its market-leading metrics service. Speaking to reporters a few days prior to the release of Nielsen’s second quarter figures, product leadership president Megan Clarken said that the change was “a major development in delivering Nielsen Total Audience to the marketplace” and “part of our commitment to provide trusted, independent measurement of the evolving modern media landscape.”

Disclosure

Dominion holds Nielsen in its Global Trends Ecommerce Fund.


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