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Thursday, November 7, 2019

-=Nielsen (NLSN) reported earnings on Thur 7 Nov 19 (b/o)

Nielsen beats by $0.09, reports revs in-line; raises FY19 EPS guidance in-line, reaffirms FY19 revs guidance
  • Reports Q3 (Sep) earnings of $0.51 per share, $0.09 better than the S&P Capital IQ Consensus of $0.42; revenues rose 1.0% year/year to $1.62 bln vs the $1.61 bln S&P Capital IQ Consensus.
  • Co issues guidance for FY19, raises EPS guidance to $1.77 to $1.83 from $1.70 to $1.80 vs. $1.77 S&P Capital IQ Consensus; sees FY19 revs of +0.0% yr/yr to +1.5% yr/yr vs. $6.48 bln S&P Capital IQ Consensus.

  • Nielsen completes strategic review -- confirms plans to split, will reduce quarterly cash dividend payment to $0.06 from $0.35
    The co announced the completion of its strategic review and its plan to spin-off the company's Global Connect business, creating two independent, publicly traded companies-the Global Media business and the Global Connect business-each of which will have sharper strategic focus and greater opportunity to leverage its unique competitive advantages. The strategic review was led by James Attwood, Chairman of Nielsen's Board of Directors.
    • As Nielsen prepares for the separation, it has been developing fit-for-purpose capital structure targets for both businesses. As part of the separation, the Board of Directors approved a reduction of the dividend, with the goal of strengthening the two prospective balance sheets ahead of the separation and providing added flexibility to invest for growth. Beginning with Nielsen's next dividend payment in December 2019, Nielsen will reduce its quarterly cash dividend payment to $0.06, from $0.35, per ordinary share. The dividend is payable on December 5, 2019, to shareholders of record at the close of business on November 21, 2019.
    • The transaction will be in the form of a distribution to Nielsen shareholders of 100% of the shares of a new entity holding the Nielsen Global Connect business, which will generally be intended to qualify as tax-free to Nielsen and its shareholders for U.S. federal income tax purposes. Immediately following the transaction, Nielsen shareholders will own shares of both Nielsen and the new entity holding the Nielsen Global Connect business. In conjunction with the spin, Nielsen Global Connect is expected to raise new debt. It is currently anticipated that substantially all of the proceeds of the new debt will be used for debt reduction at Nielsen.
    • Nielsen currently expects the spin-off transaction to be completed in nine to twelve months, subject to certain conditions, including, among others, the receipt of final Board approval, receipt of an opinion from counsel and/or ruling regarding the U.S. federal income tax treatment of the distribution, the effectiveness of a Form 10 registration statement to be filed with the Securities and Exchange Commission (SEC), the approval of Nielsen shareholders and works council consultations.

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