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Exhibit 99.1
News Release
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Investor Relations: Sara Gubins, +1 646 654 8153; sara.gubins@nielsen.com
Media Relations: Connie Kim, +1 240 274 9999; connie.kim@nielsen.com
Nielsen Reports 4th Quarter and Full Year 2021 Results; Provides 2022 Guidance
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2021 revenues of $3.5 billion increased 4.1% on a reported basis, 3.4% on a constant currency basis & 4.9% organic constant currency, above guidance |
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Net income per share of $1.53 (diluted, from continuing operations) in 2021; Adjusted EPS of $1.81, above guidance |
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Other key metrics at the high end or above guidance ranges |
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Executed on key product milestones in 2021; on track to deliver Nielsen ONE cross-media measurement solution in 2022 |
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2022 guidance issued; progressing toward medium-term targets |
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Board of Directors approves $1 billion share repurchase authorization |
New York – February 28, 2022 – Nielsen Holdings plc (NYSE: NLSN) announced fourth quarter and full year 2021 results. For the full year, revenues increased 4.1% on a reported basis, 3.4% on a constant currency basis, and 4.9% on an organic constant currency basis, above guidance. Adjusted EBITDA and Adjusted EPS exceeded the guidance range, and Free Cash Flow was at the high end of the guidance range. Nielsen also issued 2022 guidance and announced a $1 billion share repurchase authorization.
David Kenny, Chief Executive Officer, commented, “We delivered strong results in 2021. We successfully sold Nielsen Global Connect, hit significant product milestones, and exceeded all of our original 2021 guidance metrics despite facing some unanticipated challenges. We are strongly positioned within the media ecosystem, with growing relevance as audiences shift to streaming, and we are delivering value to clients across our three essential solutions. We made measurable progress toward becoming a digital-first company, and our strategy aligns with where growth in the industry is coming from. We are piloting the first iteration of Nielsen ONE, which we launched in January, with a representative group of clients across media buyers and sellers and feedback has been positive.”
“We also made progress on strengthening our balance sheet, reducing our net debt leverage by over half a turn in 2021. We now have the flexibility to return more capital to shareholders while continuing to invest in organic growth initiatives and pursue strategic, tuck-in M&A. Our $1 billion share repurchase authorization reflects our Board’s confidence in both our short and long-term growth prospects and enables us to deliver value to our shareholders.”
Fourth Quarter 2021 Results
Unless indicated otherwise, the results referenced in this press release relate to Nielsen’s continuing operations. Beginning in the first quarter of 2021, our former Global Connect business was sold and therefore reclassified to discontinued operations for all periods presented. For comparability, non-GAAP metrics have been adjusted to exclude certain interest costs, as if the sale of Global Connect and resulting de-levering occurred on January 1, 2020.
Our business consists of two major product categories: One Measurement Solutions (“Measurement”) and Impact Marketing Solutions/ Gracenote Content Solutions (“Impact” and “Content” respectively, and together “Impact / Content”). Previously, Measurement was referred to as “Audience Measurement” and Impact / Content was referred to as “Outcomes / Content.” The updated names are a result of Nielsen’s corporate rebranding which we believe better reflects the company’s transformation and focus on the global future of media.
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Fourth quarter revenues of $894 million increased 2.5% on a reported basis, 2.9% on a constant currency basis, and 4.7% on an organic constant currency basis compared to the prior year period. |
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Measurement revenues of $647 million increased 3.7% on a reported basis, 4.0% on a constant currency basis, and 5.2% on an organic constant currency basis compared to the prior year period. Overall growth was solid, with national and digital measurement products showing strength, and a third consecutive quarter of modest growth in local products. |
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Impact / Content revenues of $247 million decreased 0.4% on a reported basis, were flat on a constant currency basis, and increased 3.4% on an organic constant currency basis compared to the prior year period. Revenue in Impact grew in the high single digits on an organic constant currency basis, driven by growth in short-cycle revenue and recovery in the Sports business, offset in part by a timing-related decline in Content. |
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Our Adjusted EBITDA margin increased to 42.6% in 2021 from 42.0% driven by the strong revenue performance and benefits from the Restructuring Plan, partially offset by the return of the temporary costs savings realized in 2020 in response to the COVID-19 pandemic and investments in growth initiatives.
In July 2019, Nielsen amended its Second Amended and Restated Master Services Agreement (the "MSA"), dated as of October 1, 2017 and effective as of January 1, 2017 (the "Effective Date"), with Tata America International Corporation and Tata Consultancy Services Limited (jointly, "TCS") by executing Amendment Number One (the "Amendment") with TCS, dated as of July 1, 2019 and effective as of January 1, 2019 (the "Amendment Effective Date").
Depreciation and amortization expense associated with tangible and intangibles assets acquired in business combinations decreased to $165 million in 2020 from $166 million in 2019 and is included in depreciation and amortization expense in the consolidated statement of operations.
Our Adjusted EBITDA margin increased to 41.98% in 2020 from 40.25% in 2019 driven by temporary cost savings realized in 2020 in response to the covid-19 pandemic and the Restructuring Plan, partially offset by the revenue performance discussed above and investments in our growth initiatives.
Foreign Currency Exchange Transaction Gains/(Losses), Net Foreign currency exchange transaction losses, net, represent the net loss on revaluation of certain cash, external debt, intercompany loans and other receivables and payables.
Foreign Currency Exchange Transaction Gains/(Losses),...Read more
Our long-term financial objectives include...Read more
We redeemed $150 million outstanding...Read more
On November 3, 2019, the...Read more
Adjusted EBITDA should not be...Read more
Revenues from Measurement decreased 0.6%,...Read more
We regularly review the amount...Read more
The decrease in costs were...Read more
Selling, General and Administrative Expenses,...Read more
The below table presents a...Read more
Selling, General and Administrative Expenses,...Read more
Revenues decreased 2.3% to $3,361...Read more
Other expense, net of $77...Read more
As the customer simultaneously receives...Read more
Nielsen applied the net proceeds...Read more
We believe that important measures...Read more
The primary drivers for the...Read more
(2) Costs to stand-up Nielsen...Read more
Revenue growth was primarily driven...Read more
This was driven in part...Read more
This decrease in net cash...Read more
As of December 31, 2021,...Read more
As of December 31, 2020,...Read more
Impact / Contact revenues decreased...Read more
The increase is primarily due...Read more
As a result, fluctuations in...Read more
The following table provides a...Read more
In addition, our definition of...Read more
It is reasonably possible that...Read more
During the third quarter of...Read more
The Amendment reduced the amount...Read more
Fluctuations in the value of...Read more
Fluctuations in the value of...Read more
We received net proceeds of...Read more
Although the actual return on...Read more
However, depending on the amount...Read more
The increase in costs were...Read more
Other assumptions involve demographic factors...Read more
On February 26, 2022, our...Read more
Restructuring Charges On June 30,...Read more
If the carrying amount of...Read more
In countries with currencies other...Read more
Pre-tax restructuring charges in 2021...Read more
We capitalize software development costs...Read more
As such, there can be...Read more
The primary drivers for the...Read more
We recorded $30 million in...Read more
Our principal foreign exchange revenue...Read more
Cost of Revenues, Exclusive of...Read more
The impairment test for other...Read more
Significant assumptions inherent in this...Read more
In addition to Adjusted EBITDA...Read more
The increase in net cash...Read more
Depreciation and Amortization Depreciation and...Read more
The dividend is payable on...Read more
In June 2020, we announced...Read more
We believe we will have...Read more
The U.S. Tax Cuts and...Read more
Accordingly, we are focused on...Read more
Statements, other than those based...Read more
We recognize interest and penalties,...Read more
We continue to look for...Read more
The timing of any repurchases...Read more
Our sensitivity analyses included several...Read more
Our business strategy is built...Read more
The most significant of these...Read more
See Note 11 to our...Read more
Further, this report may contain...Read more
The actual return on plan...Read more
Adjusted EBITDA increased 1.9% to...Read more
Pursuant to the Authority, we...Read more
This decrease was primarily due...Read more
Due to the uncertainty with...Read more
We believe that only Nielsen...Read more
We believe providing constant currency...Read more
It is reasonably possible that...Read more
Restructuring charges: We exclude restructuring...Read more
Our growth objective of geographic...Read more
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Ticker: NLSN
CIK: 1492633
Form Type: 10-K Annual Report
Accession Number: 0001564590-22-007612
Submitted to the SEC: Mon Feb 28 2022 4:07:49 PM EST
Accepted by the SEC: Mon Feb 28 2022
Period: Friday, December 31, 2021
Industry: Business Services