* Cuts revenue growth range to 5-6 pct from 5-7 pct
* Shares fall 3.5 pct
June 13 Nielsen Holdings NV, best known
for its TV ratings, narrowed its full-year revenue forecast
range as Europe's economic crisis cuts into corporate spending.
The market research leader now expects revenue to grow 5
percent to 6 percent, down from its previous forecast of 5
percent to 7 percent.
The operating environment has become very difficult in
Western Europe, which is affecting clients' discretionary
spending, Chief Financial Officer Brian West said at an analyst
conference on Wednesday.
"Certain multinational corporations are being very
deliberate in how they invest around the world," West said.
Western Europe is going to be a pressure point, affecting
the Insights business, which provides clients with in-depth
analytics on their customers.
The Insights product in Western Europe is apparently down at
a double-digit rate currently, Evercore Partners analyst Douglas
Arthur wrote in a note.
Insights is a part of Nielsen's Buy segment, which brought
in more than 60 percent of the company's $5.53 billion revenue
Nielsen's significant exposure to Europe is likely to weigh
on growth for more than just the second half of 2012, analyst
Europe, Middle East and Africa brought in about a quarter of
the company's revenue last year.
"Foreign exchange headwind is going to be significant as we
go through the year," West said.
Nielsen, which went public in January last year, competes
with GfK SE, Ipsos and WPP unit
Kantar in its Buy business.
The company has a market value of $10 billion and counts
Coca Cola Co, News Corp and Procter & Gamble
among its top clients.
The company reaffirmed its full-year earnings forecast of
$1.76 to $1.82 per share.
Shares of the company, which have gained 11 percent since
their market debut last year, fell 3.5 percent in morning trade
on Wednesday. They were trading down 1 percent at $27.51 on the
New York Stock Exchange.