Nielsen Co. Reports Decline in 2006 Operating Income (posted 4/16)
The Nielsen Co., formerly VNU, reported 2006 unaudited operating income of $212 million, down from $373 million in 2005. The company said the results were negatively impacted by a number of acquisition-related expenses including a $90 million deferred revenue adjustment, $75 million in restructuring expenses, $98 million in increased amortization expense and $53 million in recruiting costs and other acquisition-related compensation.
The Nielsen Co. was acquired by a consortium of private equity firms last spring. The company’s 2006 unaudited revenues were $4.17 million, an increase of 5 percent over the prior year, excluding a $90 million decrease in revenues associated with the preliminary purchase price allocation. The company, which is the parent of Mediaweek and Billboard publisher Nielsen Business Media, also reported total debt of $8 billion as of Dec. 31, 2006, and cash balances of $631 million. Capital expenditures were $238 million in 2006 compared with $237 million in 2005.
For the complete earnings results, click here.