Nielsen sees 6.5% revenue growth before IPO

By Associated Press
Posted Jan. 18 at 10:23 a.m.

TV ratings and consumer research company Nielsen Holdings B.V. reported its preliminary 2010 financial results Tuesday, saying it expects revenue to be higher than it was in 2009. The report comes a week before the company is expected to debut in an initial public offering.

For the year ended Dec. 31, the New York-based company expects revenue between $5.11 billion and $5.13 billion, up 6.3 percent to 6.7 percent from the company’s 2009 revenue, which totaled $4.81 billion.

Nielsen also expects operating income of $715 million to $735 million, though it did not reveal its operating income for 2009.

The company mostly attributed the expected revenue jump to geographic expansion, as well as an uptick in Nielsen’s information and analytical services business.

As of Dec. 31, the company had cash of about $400 million and debt of about $8.6 billion.

Privately held Nielsen reported its year-end results as it prepares to go public. The company has said it expects to raise up to $1.57 billion in the offering, which will include more than 71 million shares expected to price between $20 and $22 apiece.

The company was acquired in May 2006 for roughly $9.7 billion by a group of private equity firms, including Blackstone Group, Carlyle Group and Kohlberg Kravis Roberts & Co.

Private-equity IPOs with high debt levels were met with tepid reactions from investors in 2010, with many  pricing below expected ranges. Nielsen, hospital HCA Inc. and toy chain Toys “R” Us signaled their plans to go public in May and June of last year, but have been waiting for the market to improve.

J.P. Morgan and Morgan Stanley are the lead managers of the IPO. Underwriters will have a 30-day option to buy up to 10.7 million additional shares to cover excess demand.

Nielsen is expected to debut next week on the New York Stock Exchange under the ticker symbol “NLSN.”

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