NEW YORK -- (Business Wire)
Nielsen Holdings plc (NYSE:NLSN) today announced its first quarter 2018
results. Revenues were $1,610 million for the first quarter of 2018, up
5.5%, or 2.4% on a constant currency basis, compared to the first
quarter of 2017.
“In the first quarter, we continued to execute on our key initiatives
while focusing on our Path to 2020 objectives. Through continuous
innovation, we are transforming our business in three major areas,
Watch, Buy, and Operations, to drive a faster growing, higher margin
business and create incremental value for our shareholders,” said Mitch
Barns, Chief Executive Officer of Nielsen.
Barns continued, “Watch had another great quarter with growth driven by
Total Audience Measurement. Our ability to provide independent,
comparable measurement to the industry is pivotal as media and audiences
continue to fragment. In our Buy business, Developed Markets continued
to see pressure in the fast moving consumer goods industry in the U.S.,
but we are confident that our investments in the Connected System, Total
Consumer Measurement, and retailer partnerships will drive improved
results despite this environment. Emerging Markets saw broad-based
growth across markets in Latin America, Eastern Europe, Africa, and
China. Our significant competitive advantages, including our balanced
client portfolio and global footprint, position us well here.”
Revenues within the Watch segment for the first quarter of 2018
increased 8.5% to $834 million, or 7.1% on a constant currency basis,
compared to the first quarter of 2017. Audience Measurement of Video and
Text revenues increased 12.0%, or 10.5% on a constant currency basis,
primarily due to our ongoing investments and continued client adoption
of our Total Audience Measurement system. Audio revenues increased 0.8%
on a reported and constant currency basis for the first quarter of 2018.
Marketing Effectiveness revenues increased 24.6%, or 22.7% on a constant
currency basis, driven by consistent investment in our product portfolio
and continued strength in our product initiatives. Other Watch revenues
decreased by $16 million, or 32.7% on a reported basis and 35.3% on a
constant currency basis, due to continued portfolio pruning.
Revenues within the Buy segment for the first quarter of 2018 increased
2.5% to $776 million, compared to the first quarter of 2017. On a
constant currency basis, Buy segment revenues decreased 2.1%, compared
to the first quarter of 2017. Buy emerging markets revenues increased
10.1%, or 6.1% on a constant currency basis, as our global footprint,
coverage expansion, and broad product offerings continued to position us
well with both local and multinational clients in these markets. Buy
revenues in developed markets were flat for the quarter. On a constant
currency basis, Buy revenues in developed markets decreased 5.2%
compared to the first quarter of 2017, due to continued softness in our
U.S. market. Revenues in Corporate Buy decreased by $8 million, or 42.1%
on a reported and constant currency basis, primarily due to continued
portfolio pruning.
Net income for the first quarter of 2018 increased 1.4% to $72 million,
compared to $71 million in the first quarter of 2017, as higher revenues
were partially offset by our retailer investments and other growth
initiatives. Net income was flat on a constant currency basis. Net
income per share on a diluted basis was $0.20 per share for each of the
first quarters ended 2018 and 2017.
Adjusted EBITDA for the first quarter of 2018 increased 0.7% to $423
million, compared to the first quarter of 2017. Adjusted EBITDA
decreased by 0.7% on a constant currency basis. Adjusted EBITDA margins
contracted 125 basis points to 26.3%, or 83 basis points on a constant
currency basis, due to our retailer investments and other growth
initiatives.
Financial Position
As of March 31, 2018, Nielsen’s cash and cash equivalents were $462
million and gross debt was $8,646 million. Net debt (gross debt less
cash and cash equivalents) was $8,184 million and Nielsen’s net debt
leverage ratio was 4.04x at the end of the quarter. Net capital
expenditures were $128 million for the first quarter of 2018, compared
to $114 million for the first quarter of 2017. Cash taxes were $42
million for the first quarter of 2018, compared to $52 million for the
first quarter of 2017.
Cash flow from operations decreased to $(117) million for the first
quarter of 2018, from $40 million in the first quarter of 2017. Free
cash flow for the first quarter of 2018 decreased to $(245) million,
compared to $(74) million in the first quarter of 2017. Cash flow
performance was driven by retailer investments and other growth
initiatives, timing of vendor and client payments, higher interest, and
higher net capital expenditures.
Capital Allocation
The company repurchased $20 million of its common stock during the first
quarter of 2018. The company has a total of $278 million remaining for
repurchase under the existing share repurchase program.
On April 19, 2018, our board of directors approved a $0.01 increase in
our quarterly cash dividend to $0.35 per common share. The dividend is
payable on June 20, 2018 to stockholders of record at the close of
business on June 6, 2018.
2018 Full Year Guidance
To reflect the expected impact of the Tax Cuts and Jobs Act of 2017
(“TCJA”), the Company has increased its 2018 GAAP net income per share
guidance range by $0.10 per share to a range of $1.50 to $1.56. The
company expects its 2018 effective tax rate to be ~34%.
|
|
|
| Revised |
|
|
| Original |
• GAAP net income per share:
| | | |
$
|
1.50 - $1.56
| | | |
$
|
1.40 - $1.46
|
| | | | | | | | | |
|
The company’s other full year guidance is unchanged from amounts
previously provided, as indicated below:
-
Total revenue growth on a constant currency basis: ~3%
-
Adjusted EBITDA margin growth on a constant currency basis: ~(60)bps
-
Free cash flow: ~$800 million
Conference Call and Webcast
Nielsen will hold a conference call to discuss its first quarter 2018
results at 8:00 a.m. U.S. Eastern Time (ET) on April 26, 2018. The audio
and slides for the call can be accessed live by webcast at http://nielsen.com/investors
or by dialing +1-866-393-4306. Callers outside the U.S. can dial
+1-734-385-2616. The passcode for the call is “5276289.” An audio replay
and transcript will be available on the investor relations website after
the call.
Forward-looking Statements
This news release includes information that could constitute
forward-looking statements made pursuant to the safe harbor provision of
the Private Securities Litigation Reform Act of 1995. These statements
include those set forth under “2018 Full Year Guidance” above as well as
those that may be identified by words such as “will,” “intend,”
“expect,” “anticipate,” “should,” “could” and similar expressions. These
statements are subject to risks and uncertainties, and actual results
and events could differ materially from what presently is expected.
Factors leading thereto may include, without limitations, general
economic conditions, conditions in the markets Nielsen is engaged in,
behavior of customers, suppliers and competitors, technological
developments, as well as legal and regulatory rules affecting Nielsen’s
business and specific risk factors discussed in other releases and
public filings made by the company (including those found under the
section entitled “Part I—Item 1A. Risk Factors” of the company’s most
recent Annual Report on Form 10-K, as such factors may be updated in
other filings with the SEC). This list of factors is not intended to be
exhaustive. Such forward-looking statements only speak as of the date of
this press release, and we assume no obligation to update any written or
oral forward-looking statement made by us or on our behalf as a result
of new information, future events, or other factors, except as required
by law.
About Nielsen
Nielsen Holdings plc (NYSE: NLSN) is a leading global performance
management company that provides clients with a comprehensive
understanding of consumers and consumer behavior. We deliver critical
media and marketing information, analytics and industry expertise about
what consumers buy (referred to herein as “Buy”) and what consumers
read, watch and listen to (consumer interaction across the television,
radio, digital and mobile viewing and listening platforms referred to
herein as “Watch”) on a global and local basis. Our measurement and
analytical services help our clients maintain and strengthen their
market positions and identify opportunities for profitable growth.
Nielsen, an S&P 500 company, has a presence in more than 100 countries,
including many emerging markets, and hold leading market positions in
many of our services and geographies. For more information, visit www.nielsen.com.
From time to time, Nielsen may use its website and social media outlets
as channels of distribution of material company information. Financial
and other material information regarding the company is routinely posted
and accessible on our website at http://www.nielsen.com/investors
and our Twitter account at http://twitter.com/Nielsen.
Results of Operations—(Three Months Ended March 31, 2018 and 2017)
The following table sets forth, for the periods indicated, the amounts
included in our condensed consolidated statements of operations:
|
| Three Months Ended March 31, (Unaudited) | |
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA) | | 2018 | |
| 2017 | |
Revenues
| |
$
|
1,610
| | |
$
|
1,526
| |
Cost of revenues
| | |
719
| | | |
661
| |
Selling, general and administrative expenses
| | |
493
| | | |
473
| |
Depreciation and amortization(1) | | |
167
| | | |
155
| |
Restructuring charges
| |
|
24
| | |
|
32
| |
Operating income
| |
|
207
| | |
|
205
| |
Interest income
| | |
2
| | | |
1
| |
Interest expense
| | |
(96
|
)
| | |
(90
|
)
|
Foreign currency exchange transaction losses, net
| | |
—
| | | |
(2
|
)
|
Other income
| |
|
1
| | |
|
2
| |
Income from continuing operations before income taxes
| | |
114
| | | |
116
| |
Provision for income taxes
| |
|
(39
|
)
| |
|
(43
|
)
|
Net income
| | |
75
| | | |
73
| |
Net income attributable to noncontrolling interests
| |
|
3
| | |
|
2
| |
Net income attributable to Nielsen stockholders
| |
$
|
72
| | |
$
|
71
| |
Net income per share of common stock, basic
| | | | | | | | |
Net income attributable to Nielsen stockholders
| |
$
|
0.20
| | |
$
|
0.20
| |
Net income per share of common stock, diluted
| | | | | | | | |
Net income attributable to Nielsen stockholders
| |
$
|
0.20
| | |
$
|
0.20
| |
Weighted-average shares of common stock outstanding, basic
| | |
356,460,561
| | | |
357,399,749
| |
Dilutive shares of common stock
| |
|
813,254
| | |
|
1,655,219
| |
Weighted-average shares of common stock outstanding, diluted
| |
|
357,273,815
| | |
|
359,054,968
| |
(1) Depreciation and amortization associated with tangible
and intangible assets acquired in business combinations were $56 million
and $54 million for the three months ended March 31, 2018 and 2017,
respectively.
Certain Non-GAAP Measures
We use the non-GAAP financial measures discussed below to evaluate our
results of operations, financial condition, liquidity and indebtedness.
We believe that the presentation of these non-GAAP measures provides
useful information to investors regarding financial and business trends
related to our results of operations, cash flows and indebtedness and
that when this non-GAAP financial information is viewed with our GAAP
financial information, investors are provided with valuable supplemental
information regarding our results of operations, thereby facilitating
period-to-period comparisons of our business performance and is
consistent with how management evaluates the company’s operating
performance and liquidity. In addition, these non-GAAP measures address
questions the Company routinely receives from analysts and investors
and, in order to assure that all investors have access to similar data
the Company has determined that it is appropriate to make this data
available to all investors. None of the non-GAAP measures presented
should be considered as an alternative to net income or loss, operating
income or loss, cash flows from operating activities, total indebtedness
or any other measures of operating performance and financial condition,
liquidity or indebtedness derived in accordance with GAAP. These
non-GAAP measures have important limitations as analytical tools and
should not be considered in isolation or as substitutes for an analysis
of our results as reported under GAAP. Our use of these terms may vary
from the use of similarly-titled measures by others in our industry due
to the potential inconsistencies in the method of calculation and
differences due to items subject to interpretation.
Constant Currency Presentation
We evaluate our results of operations on both an as reported and a
constant currency basis. The constant currency presentation, which is a
non-GAAP measure, excludes the impact of period-over-period fluctuations
in foreign currency exchange rates. We believe providing constant
currency information provides valuable supplemental information
regarding our results of operations, thereby facilitating
period-to-period comparisons of our business performance and is
consistent with how management evaluates the company’s performance. We
calculate constant currency percentages by converting our prior-period
local currency financial results using the current period exchange rates
and comparing these adjusted amounts to our current period reported
results. No adjustment has been made to foreign currency exchange
transaction gains or losses in the calculation of constant currency net
income.
The below table presents a reconciliation from revenue on a reported
basis to revenue on a constant currency basis for the three months ended
March 31, 2018.
(IN MILLIONS) (UNAUDITED) |
| Three Months Ended March 31, 2018 Reported |
|
| Three Months Ended March 31, 2017 Reported |
|
| % Variance 2018 vs. 2017 Reported | |
| Three Months Ended March 31, 2017 Constant Currency |
|
| % Variance 2018 vs. 2017 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
Revenues by segment | | | | | | | | | | | | | | | | | | | | |
Developed Markets
| |
$
|
471
| | |
$
|
471
| | | |
—
|
%
| |
$
|
497
| | | |
(5.2)
|
%
|
Emerging Markets
| |
|
294
| | |
|
267
| | |
|
10.1
|
%
| |
|
277
| | |
|
6.1
|
%
|
Core Buy | | $ | 765 | | | $ | 738 | | |
| 3.7 | % | | $ | 774 | | |
| (1.2) | % |
Corporate
| |
$
|
11
| | |
$
|
19
| | |
|
(42.1)
|
%
| |
$
|
19
| | |
|
(42.1)
|
%
|
Buy | | $ | 776 | | | $ | 757 | | |
| 2.5 | % | | $ | 793 | | |
| (2.1) | % |
| | | | | | | | | | | | | | | | | | | |
|
Audience Measurement (Video and Text)
| |
$
|
599
| | |
$
|
535
| | | |
12.0
|
%
| |
$
|
542
| | | |
10.5
|
%
|
Audio
| | |
121
| | | |
120
| | | |
0.8
|
%
| | |
120
| | | |
0.8
|
%
|
Marketing Effectiveness
| |
|
81
| | |
|
65
| | |
|
24.6
|
%
| |
|
66
| | |
|
22.7
|
%
|
Core Watch | | $ | 801 | | | $ | 720 | | |
| 11.3 | % | | $ | 728 | | |
| 10.0 | % |
Corporate/Other Watch
| |
|
33
| | |
|
49
| | |
|
(32.7)
|
%
| |
|
51
| | |
|
(35.3)
|
%
|
Watch | | $ | 834 | | | $ | 769 | | |
| 8.5 | % | | $ | 779 | | |
| 7.1 | % |
Total Core Buy and Watch | | $ | 1,566 | | | $ | 1,458 | | |
| 7.4 | % | | $ | 1,502 | | |
| 4.3 | % |
Total | | $ | 1,610 | | | $ | 1,526 | | |
| 5.5 | % | | $ | 1,572 | | |
| 2.4 | % |
| | | | | | | | | | | | | | | | | | | |
|
The below table presents a reconciliation of Net Income and Adjusted
EBITDA on a reported basis to a constant currency basis for the three
months ended March 31, 2018.
(IN MILLIONS) (UNAUDITED) |
| Three Months Ended March 31, 2018 Reported |
|
| Three Months Ended March 31, 2017 Reported |
|
| % Variance 2018 vs. 2017 Reported | |
| Three Months Ended March 31, 2017 Constant Currency |
|
| % Variance 2018 vs. 2017 Constant Currency | |
| | | | | | | | | |
| | | | | | | |
| | |
| | | | | | | | | | | | | | | | | | | |
|
Net Income attributable to Nielsen Stockholders
| |
$
|
72
| | |
$
|
71
| | | |
1.4
|
%
| |
$
|
72
| | | |
—
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
| |
$
|
423
| | |
$
|
420
| | | |
0.7
|
%
| |
$
|
426
| | | |
(0.7
|
)%
|
| | | | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
We define Adjusted EBITDA as net income or loss from our consolidated
statements of operations before interest income and expense, income
taxes, depreciation and amortization, restructuring charges, stock-based
compensation expense and other non-operating items from our consolidated
statements of operations as well as certain other items that arise
outside the ordinary course of our continuing operations specifically
described below.
Restructuring charges: We exclude
restructuring expenses, which primarily include employee severance,
office consolidation and contract termination charges, from our Adjusted
EBITDA to allow more accurate comparisons of the financial results to
historical operations and forward-looking guidance. By excluding these
expenses from our non-GAAP measures, management is better able to
evaluate our ability to utilize our existing assets and estimate the
long-term value these assets will generate for us. Furthermore, we
believe that the adjustments of these items more closely correlate with
the sustainability of our operating performance.
Stock-based compensation expense: We
exclude the impact of costs relating to stock-based compensation. Due to
the subjective assumptions and a variety of award types, we believe that
the exclusion of stock-based compensation expense, which is typically
non-cash, allows for more meaningful comparisons of operating results to
peer companies. Stock-based compensation expense can vary significantly
based on the timing, size and nature of awards granted.
Other non-operating expenses, net: We
exclude foreign currency exchange transaction gains and losses primarily
related to intercompany financing arrangements as well as other
non-operating income and expense items, such as, gains and losses
recorded on business combinations or dispositions, sales of investments,
net income attributable to noncontrolling interests and early redemption
payments made in connection with debt refinancing. We believe that the
adjustments of these items more closely correlate with the
sustainability of our operating performance.
Other items: To measure operating
performance, we exclude certain expenses and gains that arise outside
the ordinary course of our continuing operations. Such costs primarily
include legal settlements, acquisition related expenses, business
optimization costs and other transaction costs. We believe the exclusion
of such amounts allows management and the users of the financial
statements to better understand our financial results.
Adjusted EBITDA is not a presentation made in accordance with GAAP, and
our use of the term Adjusted EBITDA may vary from the use of
similarly-titled measures by others in our industry due to the potential
inconsistencies in the method of calculation and differences due to
items subject to interpretation.
We use Adjusted EBITDA to measure our performance from period to period
both at the consolidated level as well as within our operating segments,
to evaluate and fund incentive compensation programs and to compare our
results to those of our competitors. In addition to Adjusted EBITDA
being a significant measure of performance for management purposes, we
also believe that this presentation provides useful information to
investors regarding financial and business trends related to our results
of operations and that when non-GAAP financial information is viewed
with GAAP financial information, investors are provided with a more
meaningful understanding of our ongoing operating performance.
Adjusted EBITDA should not be considered as an alternative to net income
or loss, operating income, cash flows from operating activities or any
other performance measures derived in accordance with GAAP as measures
of operating performance or cash flows as measures of liquidity.
Adjusted EBITDA has important limitations as an analytical tool and
should not be considered in isolation or as a substitute for analysis of
our results as reported under GAAP.
The below table presents reconciliations from net income to Adjusted
EBITDA for the three months ended March 31, 2018 and 2017:
|
| Three Months Ended March 31, (Unaudited) |
(IN MILLIONS) | | 2018 |
|
| 2017 |
Net income attributable to Nielsen Stockholders | |
$
|
72
| | |
$
|
71
|
Interest expense, net
| | |
94
| | | |
89
|
Provision for income taxes
| | |
39
| | | |
43
|
Depreciation and amortization
| |
|
167
| | |
|
155
|
EBITDA
| | |
372
| | | |
358
|
Other non-operating expense, net
| | |
2
| | | |
2
|
Restructuring charges
| | |
24
| | | |
32
|
Stock-based compensation expense
| | |
13
| | | |
15
|
Other items(a) | |
|
12
| | |
|
13
|
Adjusted EBITDA | |
$
|
423
| | |
$
|
420
|
(a) For the three ended March 31, 2018 and 2017, other items primarily
consisted of transaction related costs and business optimization costs.
Effective January 1, 2018, we adopted Accounting Standard Update
2017-07 “Compensation — Retirement Benefits: Improving the Presentation
of Net Periodic Pension Cost and Net Periodic Postretirement Benefit
Cost” (the “ASU 2017-07”), which changed the presentation of net
periodic benefit cost related to employer sponsored defined benefit
plans and other postretirement benefits. As a result of the adoption of
ASU 2017-07, we revised our 2017 Adjusted EBITDA as follows:
Original – as reported
|
| Three Months Ended |
|
| |
(IN MILLIONS) | | March 31, 2017 |
|
| June 30, 2017 |
|
| September 30, 2017 |
|
| December 31, 2017 | | | Full Year |
| |
| | | |
| | | |
| | | |
| | | |
| |
Watch
| | |
$ 323
| | | |
$ 357
| | | |
$ 390
| | | |
$ 415
| | | |
$ 1,485
|
Buy
| | |
108
| | | |
163
| | | |
145
| | | |
171
| | | |
587
|
Corp
| | |
(9)
| | | |
(8)
| | | |
(13)
| | | |
(7)
| | | |
(37)
|
Adjusted EBITDA – original
| | |
$ 422
| | | |
$ 512
| | | |
$ 522
| | | |
$ 579
| | | |
$ 2,035
|
| | | | | | | | | | | | | | | | | | |
|
Other income/(expense), net
| | |
$ -
| | | |
$ (2)
| | | |
$ (1)
| | | |
$ (14)
| | | |
$ (17)
|
Net income attributable to Nielsen stockholders
| | |
$ 71
| | | |
$ 131
| | | |
$ 146
| | | |
$ 81
| | | |
$ 429
|
| | | | | | | | | | | | | | | | | | |
|
Revised in accordance with ASU 2017-07
|
| Three Months Ended |
|
| |
(IN MILLIONS) | | March 31, 2017 |
|
| June 30, 2017 |
|
| September 30, 2017 |
|
| December 31, 2017 | | | Full Year |
| |
| | | |
| | | |
| | | |
| | | |
| |
Watch
| | |
$ 323
| | | |
$ 357
| | | |
$ 390
| | | |
$ 416
| | | |
$ 1,486
|
Buy
| | |
108
| | | |
162
| | | |
144
| | | |
170
| | | |
584
|
Corp
| | |
(11)
| | | |
(10)
| | | |
(15)
| | | |
(10)
| | | |
(46)
|
Adjusted EBITDA – revised
| | |
$ 420
| | | |
$ 509
| | | |
$ 519
| | | |
$ 576
| | | |
$ 2,024
|
| | | | | | | | | | | | | | | | | | |
|
Other income/(expense), net
| | |
$ 2
| | | |
$ 1
| | | |
$ 2
| | | |
$ (11)
| | | |
$ (6)
|
Net income attributable to Nielsen stockholders
| | |
$ 71
| | | |
$ 131
| | | |
$ 146
| | | |
$ 81
| | | |
$ 429
|
| | | | | | | | | | | | | | | | | | |
|
Free Cash Flow
We define free cash flow as net cash provided by operating activities,
less capital expenditures, net. We believe providing free cash flow
information provides valuable supplemental liquidity information
regarding the cash flow that may be available for discretionary use by
us in areas such as the distributions of dividends, repurchases of our
common stock, voluntary repayment of our debt obligations or to fund our
strategic initiatives, including acquisitions, if any. However, free
cash flow does not represent residual cash flows entirely available for
discretionary purposes; for example, the repayment of principal amounts
borrowed is not deducted from free cash flow. Key limitations of the
free cash flow measure include the assumptions that we will be able to
refinance our existing debt when it matures and meet other cash flow
obligations from financing activities, such as principal payments on
debt. Free cash flow is not a presentation made in accordance with GAAP.
The following table presents reconciliation from net cash provided by
operating activities to free cash flow:
|
| Three Months Ended March 31, (Unaudited) | |
(IN MILLIONS) | | 2018 | |
| 2017 | |
Net cash provided by operating activities
| |
$
|
(117)
| | |
$
|
40
| |
Less: Capital expenditures, net
| |
|
(128
|
)
| |
|
(114
|
)
|
Free cash flow
| |
$
|
(245
|
)
| |
$
|
(74
|
)
|
| | | | | | | |
|
Net Debt and Net Debt Leverage Ratio
The net debt leverage ratio is defined as net debt (gross debt less cash
and cash equivalents) as of the balance sheet date divided by Adjusted
EBITDA for the twelve months then ended. Net debt and the net debt
leverage ratio are commonly used metrics to evaluate and compare
leverage between companies and are not presentations made in accordance
with GAAP. The calculation of net debt and the net debt leverage ratio
as of March 31, 2018 is as follows:
(IN MILLIONS) (Unaudited) | |
Gross debt as of March 31, 2018
|
|
$
|
8,646
| |
Less: cash and cash equivalents as of March 31, 2018
| |
|
(462)
| |
Net debt as of March 31, 2018 | | $ | 8,184 | |
| | | |
|
Adjusted EBITDA for the year ended December 31, 2017
| |
$
|
2,024
| |
Less: Adjusted EBITDA for the three months ended March 31, 2017
| |
$
|
(420
|
)
|
Add: Adjusted EBITDA for the three months ended March 31, 2018
| |
$
|
423
|
|
Adjusted EBITDA for the twelve months ended March 31, 2018 | | $ | 2,027 | |
| | | |
|
Net debt leverage ratio as of March 31, 2018 | | | 4.04x | |
| | | |
|
2018 Guidance Non-GAAP Reconciliations
The below table presents the reconciliation from net income to Adjusted
EBITDA for our 2018 guidance:
(IN MILLIONS) |
| Revised |
| Original |
Net income | |
$
|
535 - 560
| |
$
|
500 - 525
|
Interest expense, net
| | |
385 - 395
| | |
385 - 395
|
Provision for income taxes
| | |
275 - 295
| | |
310 - 330
|
Depreciation and amortization
| | |
640 - 660
| | |
640 - 660
|
Restructuring charges
| | |
85 - 95
| | |
85 - 95
|
Stock-based compensation expense and other
| |
|
80 - 100
| |
|
100 - 120
|
Adjusted EBITDA | |
$
|
2,040 – 2,070
| |
$
|
2,060 – 2,090
|
| | | | |
|
The below table presents a reconciliation from revenue on a reported
basis to revenue on a constant currency basis for our 2018 guidance:
(IN MILLIONS) |
| 2018 Guidance |
|
| % Variance Constant Currency |
|
|
|
| 2017 Revenue Constant Currency |
Total Revenue
| |
$
|
~6,860
| | |
$
|
~3.0%
| | | | |
$
|
6,663
|
| | | | | | | | | | | | |
|
The below table presents reconciliation from net cash provided by
operating activities to free cash flow for our 2018 guidance:
(IN MILLIONS) |
| |
Net cash provided by operating activities
| |
~$1,300
| |
Less: Capital expenditures, net
| |
~(500
|
)
|
Free cash flow
| |
~$800
| |
| | |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180426005374/en/
Contacts:
Nielsen Holdings plc
Investor Relations:
Sara
Gubins, +1 646-654-8153
or
Media Relations:
Fernanda
Paredes, +52(1) 551398 2679
Source: Nielsen Holdings plc
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