Nielsen Splitting Into Two With Spin Off Of Global Connect Division, Third Quarter Revenue Up

Splitting In Two

NIELSEN HOLDINGS PLC is spinning off its Global Connect business, which provides data for manufacturers and retailers, and retaining the Global Media division, which, among other things, provides radio, TV, and digital ratings and measurement. A new entity consisting of NIELSEN Global Connect will be formed, with 100% of shares distributed to NIELSEN shareholders in a tax-free transaction, followed by the raising of new debt for the spinoff company. The deal is expected to be completed in 9-12 months.

"NIELSEN has two strong and global franchises -- Global Media and Global Connect. Following an extensive review process, which included an in-depth analysis of our businesses, strategies and market opportunities, the Board concluded that separating into two independent, publicly traded companies is the best path to position each business for long term success and maximize value creation," said Board Chairman JAMES ATTWOOD. "As independent companies, both NIELSEN -- the Global Media business -- and the new company consisting of Global Connect will enjoy added flexibility and further strengthen their paths toward a new phase of growth, productivity and industry leadership."

"Since beginning the strategic review, NIELSEN has evolved significantly. We are building a track record of execution, led by improved operational and financial discipline, and we have confidence in the path forward for each business," said CEO DAVID KENNY, who will remain CEO of the Global Media business while a new CEO is sought for the Global Connect business. "Both the Global Media and Global Connect businesses are independently essential to the industries they serve, but each business has unique dynamics. Our decision to separate them marks a milestone in our strategic evolution and will best position each to serve the specific needs of their clients and successfully address rapidly changing dynamics in the marketplace. As two independent companies, we can better drive decision making with velocity and push key initiatives to accelerate performance enhancements of each business."

The company also released its third quarter 2019 results, with revenue up 1% year-to-year (2.4% on a constant currency basis) to $1.616 billion; Global Media revenues were up 3.9% (4.6% constant currency) to $870 million, while Global Connect fell 2.2% (flat on constant currency basis) to $746 million. Net income fell from a gain of $96 million (27 cents/diluted share) to a loss of $472 million (-$1.33/diluted share), the latter including an impairment charge due to writedown of goodwill in the Connect segment.

KENNY said, "We are pleased with our third quarter results. Both Media and Connect revenues were ahead of our expectations, reflecting strong execution as well as our focus on driving faster, bolder decisions to enhance value for Nielsen and for our clients. We also announced today the conclusion of our strategic review and our decision to separate Global Media and Global Connect. As we look forward, we remain focused on executing on our growth strategies and positioning both businesses to create value for our shareholders."

The board has also reduced the company's quarterly cash dividend payment to $0.06, from $0.35, per ordinary share, payable on DECEMBER 5th to shareholders of record on NOVEMBER 21st.

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