Nielsen Reports Profit Losses
Income affected considerably by restructuring, goodwill charges in 2008.
Nielsen Business Media parent the Nielsen Company Friday reported an operating income of $118 million for 2008, down considerably from $416 million in 2007. Revenues were $5 billion, up about 6 percent from the prior year.
Nielsen attributed the profit decline, in part, to $726 million in goodwill impairment and deal-related costs. Roughly $120 million of that was attributed to restructuring charges associated with the termination of about 1,200 staffers in 2008, as well as $24 million in contractual termination costs and asset write-offs.
Since December 2006, Nielsen has terminated approximately 6,100 employees as part of a company-wide restructuring effort. The company has about 36,000 full-time employees worldwide.
As of last December, the Nielsen Company carried $8.5 billion in debt and had $466 million in cash balances, the company said.
Its Business Media segment—which includes about 60 trade shows, 250 digital properties and nearly 30 print titles, including the Hollywood Reporter, Billboard and Mediaweek—reported an operating loss of $251 million, down from a $82 million profit in 2007. Revenue, which accounted for approximately 9 percent of Nielsen’s overall sales mix, was $440 million, down 10.1 percent from $490 million in 2007.
In addition to restructuring fees, Nielsen attributed losses in the Business Media unit to “lower advertising revenues caused by industry softness” and a decline in exposition revenues due to “lower exhibitor attendance.”
Last June, Nielsen sold American Artist, Drawing, Watercolor and Workshop magazines to crafts and arts publisher Interweave—a unit of Loveland, Colorado-based Aspire Media.
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Nielsen Business Media
Submitted by Anonymous on Fri, 03/27/2009 - 18:06.Not surprising performance when you consider that the CEO of this unit knows nothing about business media...perhaps that GE guy will wake up now?
...Other Factors leading to Nielsen's decline
Submitted by Anonymous on Fri, 03/27/2009 - 19:44.As a senior executive at Nielsen for over 10 years, it is easy to also include lack of leadership and digital focus in this area.
Some of the best players in the industry have been through these doors, and they have all been used and abused by this organization. Print and Expo are in decline, this has been a trend for 10 years straight, yet they keep dumping cash in brand restructuring and bad internal technology.
Nielsen is a data business, and they would be smart to kill 'Business Media' before it really dents their overall bottom line.
Just my two cents.
What to Do
Submitted by Anonymous on Sat, 03/28/2009 - 11:43.Having "served time" at Nielsen Business Media, I can say the place was the biggest mess I have ever seen. Brands are not aligned properly and there is minimal cooperation within brands and between synergistic divisions of the corporation. The prior post almost has it right. They should either try to sell Business Media in its entirety or discard all assets except for the Hollywood Reporter and Billboard and turn those two assets into the pure consumer-facing entertainment brands they should be. Roll-up a couple of perezhilton.com-type entertainment/music sites and they've got something...
A giant mess
Submitted by Anonymous on Sun, 03/29/2009 - 11:14.Nielsen "Business Media" is a disaster!! As an employee for 2 years from 2006 to 2008, it quickly became obvious that leadership within has no clue what they are doing with one bad "business" decision after another. This division is now run by overweight and overpaid individuals, all of whom have nothing to contribute to a digital process.
... Same Old Story
Submitted by Anonymous on Mon, 03/30/2009 - 10:05.As someone who worked within the Nielson (VNU) Business Media Group for almost 8 years - the current state of affairs does not come as a surprise. This group has been mismanaged from the onset and has seen some incredible talent walk (or get pushed) out the door. The change from MM to the current group has not seen any positive change – because key management figures do not understand B to B media, and they apparently do not care to learn. The continuation of management practices of stripping key properties in support of those that should be closed, managing to the bottom-line (at any cost), creating a work environment that that demands (or job loss will follow) poor business practices all lend themselves to the current state of affairs – and does not create a positive or productive work environment. They should either learn how to manage this valuable division or get out of the business. (Preferably the later)
Blind Leading the Blind
Submitted by Anonymous on Mon, 03/30/2009 - 12:30.Oh the stories I could tell about this organization. Let's just say that my boss, who didn't have a clue about anything digital, wasted my time correcting HIS grammar. "Do you think this comma should go here, or here?". I wish I was joking, but I'm not. This was easily the worst job I've ever had. Took me 6 months to realize that no one had a clue. Left and am now the head of a digital consulting practice. What's funny is they tried to hire my new company for what I used to do for them at less than a 1/3 of the cost. Go figure, but I guess that's what happens when your primarily goal is avoiding spelling mistakes.
Blind Leading the Blind
Submitted by Anonymous on Tue, 03/31/2009 - 11:52.Too bad you didn't pay more attention to what your boss at Nielsen was telling you. Your final sentence is grammatically incorrect.
Very Poor Management
Submitted by Anonymous on Tue, 03/31/2009 - 21:39.Very inexperienced group of individuals holding the key positions in Nielsen Business Media leading the groups that actually produce these digital products and who have no idea how to even begin to produce quality products. How can they lead when they don't understand the most basic requirements for good website design or development? Management is not only inexperienced in digital but also in human resources and overall management skills. Its pretty bad.
How about some names attached to the Nielsen trashing
Submitted by Mitchell York on Wed, 04/01/2009 - 07:48.Why is everyone here leaving anonymous notes about NBM? the commentary would be so much more interesting if identified with its authors. I never worked for NBM but know many people who have and who continue to--and for the lucky ones who continue to have jobs, it can't be comforting to read unsigned notes trashing their employer. "Just my two cents" as one of the writers above says.
about using real names
Submitted by Anonymous on Wed, 04/01/2009 - 12:37.The fact that people don't want to express their concerns while using real names should tell everyone all they need to know about the culture of the environment at NBM.
Not surprised
Submitted by Anonymous on Wed, 04/01/2009 - 14:49.As one of the many people laid off at NMB last year, I can say what I saw of the company (I was only there a few months before layoff) was disappointing. The marketing is not very well integrated across products (both print and events/expos). Everyone seems to be working in a vacuum, with no clear shared goals. The very fact that there wasn't good enough budget forecasting and planning to realize that it would be wrong to hire me and the lay me off a few months later speaks volumes about the way this place is run. I was so disheartened to be let go so quickly after being brought on. Nothing seems stable there, and my severance was terrible (as were the severances of those laid off with much longer tenure than me). Anyone looking at roles there should consider themselves warned.
I am a customer who isn't happy...
Submitted by imberry on Thu, 04/02/2009 - 16:13.None of what I have read above surprises me. I realize most of you are probably employees or past employees. I am a CUSTOMER of NBM in the hospitality industry. I would hope the fellow at the top would pay attention to what I and so many others in my industry have to say. I have never experienced such a level of indifference to customers as I have from senior management at NBM. It became very clear to many of us (NBM Customers) that these new comers in these senior management positions have no clue about our industry. More importantly they really don't care. Slowly but surely they have been making decisions that will ultimately cost Nielsen dearly. It all worked very well before these guys took over. It’s very sad and if some very serious changes aren’t made very soon Nielsen will suffer the consequences of the actions and lack of action of the Media group.
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