For Nielsen Holdings, Wednesday was “Investor Day.”
It was also the day the company formally unveiled the “new Nielsen,” with a “detailed view of its focused growth strategy and medium-term financial framework” on display.
With the spin-off of the Nielsen Global Connect business to affiliates of Advent International Corporation, a Nielsen focused on audience measurement services — including those for radio and TV broadcasters — was given the spotlight as the company sees to climb out of a deep hole on Wall Street.
Investors seem ho-hum 24 hours later, with NLSN off 1.1% to $18.91 at 2pm Eastern on Thursday. Nielsen shares on Dec. 9 reached a pandemic-era high of $19.12; NLSN opened 2020 at $20.36. That said, the five-year track for NLSN is downright downbeat.
With long-term growth now in clear focus minus a consumer data arm, members of Nielsen’s leadership team discussed the company’s products, technology, and “transformation into the ‘New Nielsen,'” once its Connect business is spun.
Specific topics discussed include “new growth across three essential solutions” — Audience Measurement, Audience Outcomes and Gracenote Content Services. Then, there was a segment on Nielsen’s “compelling financial model underpinned by accelerating revenue growth and improving free cash flow conversion.”
While some may dismiss the event as a dog and pony show, Nielsen CEO and Chief Diversity Officer David Kenny noted, “This is a transformative time for Nielsen. We have redesigned our products, our business platform, and our operating model, positioning Nielsen to better deliver the solutions our clients need in the rapidly changing global media ecosystem. We are now fully aligned around three essential solutions that are designed to drive growth by leveraging a single media platform across a global digital-first footprint.”
He continued, “For the New Nielsen, Audience is Everything. As the essential provider of data and analytics to the media marketplace, we have a significant opportunity to expand our role as we help our end markets better find and monetize their audiences. We are uniquely positioned as the only company that can offer a de-duplicated cross-media audience measurement solution. Yesterday’s launch of Nielsen ONE, our cross-media solution, marks a major milestone for Nielsen and the media industry. We have made significant progress in our efforts to enhance value for our clients and our shareholders.”
Nielsen Sticks With Its 2020 Outlook
Nielsen also said it is reiterating its recently improved full year 2020 outlook and will provide a pro-forma 2020 outlook, adjusting for the proposed sale of Nielsen Global Connect, which is expected to be completed in the second quarter of 2021, subject to customary closing conditions.
The company will also provide a preliminary 2021 outlook and introduce a medium-term financial framework that Nielsen expects will create significant shareholder value.
The company plans to provide detailed 2021 guidance on its Q4’20 earnings call in February 2021.
