Nielsen (NLSN) 7 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the 2020 Nielsen Holdings Third Quarter Results Call and to discuss the sale of Global Connect. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] We ask that you limit yourself to one question and re-queue for any additional questions. Please be advised that today's conference is being recorded. now Senior hand and Vice would to conference Treasury. I Gubins, Sara President, Instructions] like the to over [Operator Investor Relations

is Nielsen's on our XXXX David Relations presentation financial under Good us section I'm of joined available Connect you Connect, Thank CEO, performance. this Zukauckas; and announced David that of and our discuss CEO Kenny; business quarter morning, slide the Linda Events sale we'll Rawlinson. Investor third for our call A by: use of CFO, everyone. the to our joining the website.

to Before impact we contain begin, all of COVID-XX. the proposed that I'd to to today relating like our responses remarks may your transaction, those questions remind and XXXX the you and including statements, forward-looking of guidance

and under to no November our and inherently as view risk today, obligation are Forward-looking statements X, involve we only reflect and uncertainties update. of

Relations website. earnings to financial Our and website as in as the that actual available at press are to assume filed expected certain most non-GAAP financial of comparable our any periods required on non-GAAP the in call, a today, currently Investor these update including our will future nielsen.com. most is except of We measures XX-K, section Report of refer also release, no Reconciliations number GAAP recent reports which available by statements, in at filed differ subsequent today's available our XX-Q forward-looking are including to obligation the we law. and On SEC, those the third from our measures. Annual which uncertainties, measures will section on of may materially results quarter Risk Factors in Form of amended, be those risks because with the identified

limit And to David will to time one call, Feel Kenny. start on For you. I'd again, like yourself always, so the we it can to everyone. to over now, join call if remains, CEO, you Q&A, question our we free accommodate turn that to queue we ask as and the to

for call you joining Thank today. the

Global plus main have on of private business the performance. Starting sale our equity Jim our and topics of of sale we progress; highly for the quarter the and Connect, for updated updates Jim and a Global Ventures three performance-based announced business first, yesterday their Advent outlook We to tied finally, with Connect to International Peck; regarded results and Global second, Advent our warrant long-term sale strong $X.X investor Peck billion the approximately to cover; third International, to Connect our XXXX. partner

I a has make the analytics and Before comments get few retail fast-moving I to strong and in and transaction, measurement its franchise industry. global industry. Nielsen into about is a providing the XX-year-old of Nielsen the consumer Connect history details Connect. want goods leader to a a It

this for global Connect long-term and thank Our to its This investor its their transformation, on people. dedication, performance. continued to look every especially potential. as is operate its investment the work forward pandemic. team driving team invest work and growth for success. with personally seeing and Connect I Global who Connect, clients, Connect certainly privately held to help job a achieve Connect during an and investment Connect's I business each the will to hard strengthening is its allow financial its colleague has improving accelerate company to and competitive experienced want keen incredible Connect its done and an great in Advent's position in its

multiple sale Board of XX-month on basis. standalone represents Now approved Connect's adjusted a price of Directors. times let to of X me EBITDA unanimously the which turn transaction, approximately details trailing a Nielsen's was The the by

closing customary the in close subject vote. to approval and and conditions We expect to Nielsen transaction the quarter regulatory second shareholder a XXXX, of

about sheet on It basis leverage expect have at growth on on our media XXXX. approximately and liabilities to more balance net Day financial of such spinoff. than expected the proceeds with $X of discontinued compares debt The our that a debt-like greater a quarter strategy substantial X expand value our adjustments, transaction of Investor to been X, the will operation Global by plan greater time and balance roughly to our in there. taxes year-end of reduces items, XXXX marketplace. We'll forma starting I business Connect will terrific our be would pay reported near-term is at have shareholders a leases. virtual the times Connect strategy the the spinoff obligation of sheet Global deliver primarily we first as impacted shareholders. That flexibility and be join Nielsen case and other coming strengthens net hope forward outlook all to a with and as This for This execute sale at results on our We proceeds and will the sharing leverage role and in outcome use the I X the we look the equipment it had up down. to of us and other down path. December approximately The to in global billion gone you pension segment for a Nielsen pro certainty times.

had year, key in third the we expectations. to our or the with ahead progress for the and made turn the In outlook in-line focus the performance, today, to quarter of quarter the of want results. For metrics let's now on rest all we so great we strong third

execution. a successful track record We of are building consistent

and in-line visibility COVID-influenced Our is expectations. in we business with would our a rates and recurring I revenues retention client with dynamic XX% say revenue, constant environment. resilient a What which X% declined providing currency, in was have and high strong model

cash quarter above our of since XXXX, which which discipline, flow the way second and the Free Our with grew results the of adjusted than higher EBITDA also These is expansion X.X% rate decisive that significant actions was Nielsen growth margin changes expectations. operates. year-over-year, we expected. reflect permanently highest metric

we're to resource faster growth cost our allocation capital prioritizing and We our zero-basing structure opportunities, and are expenditures. our

We several this Notably, good have is and we plan to international more platform-based count. transformation organization. smaller exited and third tightly a announced we optimization expediting our to the on in markets progress agile, manage made quarter head efficient, continue the July, in

challenging have teams appreciative I'm to hard results, a Our of in worked so truly order my these what colleagues' still adapted and incredibly in well and is deliver environment efforts.

well-positioned Media fluid now tightened range. across target I quarter, margin, be and EBITDA EBITDA, we've adjusted and adjusted have strong refined health our then XXXX review ranges organization, I'll we priority. employees turn continues call proven and Linda another the of both range to especially deliver shown highlights and the we guidance. in to execute we our EPS progress That for But first are and very confident closely. safety global for Connect. to of our to to as goals. know, ability raised on situation, pandemic cash the ability over the a am adjusted in COVID dynamic come review and also and flow, adapt a market, XXXX to you and I'll scenarios. our the is, a said, we We in back our financials, and Following our are a our free monitoring It

everyone. morning, David, you, and Thank good

constant in unprecedented revenue, than of an basis including review COVID. highlighted, COVID-related ahead currency, Overall declined to expansion were start results which our points. in-line the XXX we the our cost by continued revenue X%, Constant greater permanent a optimization third this takeout related announced against Adjusted expectations currency COVID David we comes X.X% EBITDA free declined to margin driven of with drag was and our with at of lesser forecast, in Slide cost As this though QX. disciplined pace time. and QX higher plan XX our results. pressures in FX than flow in X top execute put to expected, spite than July. from line including or management, Overall better of I'll expectations. organic, continuing X.X%, temporary continued includes revenue to top on line points savings cash and quarter plans basis pressure

Nielsen's third in was margin highest history. Our margin the adjusted of EBITDA XX.X% quarter recent

results separation-related restructuring. These year-over-year remained and the was year. $XXX in of cash Key Cash higher the million million million Our cash cash EBITDA EPS of year-over-year, by solid. the taxes, million. to actions the above quarter. while in partially exclude prior our EBITDA was lower up and $X.XX third than down and $XX higher year-over-year flow was adjusted more Adjusted was $X.XX quarter million by QX offset amortization. adjusted $XXX offset EBITDA Higher improvement $XX up Free $XX expectations was taxes include compared drivers from and higher was flow revenue in XXXX. of depreciation of payments

restructuring began run in took July, on incurred in the the Let announced million and permanent QX, in to million $XXX we the of of In update we this of plan me to annual half cost we the drive we plan $XX generate the in third rate beyond, second quarter. XXXX and On you charge quarter. from third charges restructuring savings savings top $XX the in plan. optimization million

the about and savings on executing XXXX. in business fourth half be on realize the the charge the expect track of to efforts We begun to modest. quarter We've transformation remain in more

businesses. to begun also and have We exit certain markets

the quarter. the impact was which of Our during organic revenue for growth small exits, relatively adjusts

turn XXXX, bonds. euro bonds expect to and free the October, In to issued down third I flow we than at We of partially and times XX results, secured X were now end net markets segment redeem million in years quarter. XXXX quarter. the active the previously senior from of billion times the expected. to term X.X that in X.X XXXX due stronger proceeds I maturing our $X.XX be leverage bond of cash in the we loans used debt expectations to note prior Before during to years also $XXX during refinanced the unsecured We

somewhat segment impact though lessened revenue adjusted exits. constant constant to X.X% in million. Audience and end continued basis constant XXX expectations. declined continued Turning for results, X.X% $XXX social compared organic, generally QX adjusts QX Slide revenue revenue Though sports, in and the auto Plan/Optimize currency. Margins pressure music organic points COVID-driven down XXXX X%, up continued XX.X% sports and COVID television ad slightly revenue. local to up our adjusted which to the sale revenue I'll divestiture declined this with stronger, and the currency, X.X% of our were down in the EBITDA starting products. currency business. down of or business XX.X% was saw ongoing currency revenue is short-cycle of hoc million, Gracenote to declined, left. constant market $XXX QX. in line review currency, Media's organic, We with revenue, for pressure the Media X.X% Media was constant X, X.X% Measurement impact on QX COVID to with which

QX developed you first Media, acquired impressive XX.X% the As COVID quarter than quarter constant currency, Precima, the both put actions provider and down this and right declined impact emerging our is plan. continued margin X.X% on we markets impact January and businesses revenue temporary demonstrated first organic driving with X.X% optimization put of can continued the decline page, Predict/Activate down adjusted see, in which was conducted Overall, constant actions pressures the of of markets. was side plan Measure revenue impact X.X% adjusts savings pressures in revenue EBITDA improvement a margin Margins on X.X%, temporary a and in face-to-face XX.X%, driving This market more expansions. down late constant the the exits. COVID. permanent revenue in-store, significant X.X% lesser benefit optimization currency, lessening than which in million, X.X% offset the place adjusts includes by the organic constant reflecting of from currency, performance had a but points cost decline analytics are XXXX, focus of we in the of decline QX. for in some QX in The Similar cost but the Shifting in place the Connect declined for with up were second XX.X% expansion. of to organic decline to to up currency Revenue in constant the X.X% a permanent quarter. where basis cost a we quarter loyalty clear currency and $XXX the to COVID revenue benefit to the is extent solid with were $XXX from impact work acquisition. XXX million. the efficiencies. Precima XX.X% organic revenue and Connect the

I'll discuss XX, Slide our XXXX Turning outlook. to

We free are updating flow adjusted guidance. guidance, our raising XXXX tightening guidance, EPS cash maintaining and EBITDA margin adjusted revenue, raising and

to X% X%. X% company total This decline revenue Media. Our include for currency guidance includes to of continues to a decline X% constant of

quarter, ongoing ad we sports, analytics. return to As largely we slower fourth look a COVID expect continue to at the hoc impacts auto due of from and

seeing our currently to includes For the the closer basis to in The decline continue year-end expect we a are businesses to a the lessening uncertainty improve, points in slowing and to basis environment. and Connect, markets basis existing X% exit, revenue but and we and basis revenue of XXXX last months. COVID in exits, the we to open is demand exits looking trends. XX global benefit about also of revenue XX year. impact timing We plan to relationship in X% of in closer for QX we completed XXX an in points forecast points points XXXX. some additional this XXXX impact from In net forecast has and about Including the Last as XX so the acquisitions quarter, of in talked XX shifted points remains few XXXX. approximately divestitures basis XXX now the

raising EBITDA cost EBITDA of basis given range guidance performance takeouts. $X.XXX to third XX billion billion solid XX%, $X.XXX the and guidance to by to in XX.X% our a range to permanent adjusted tightening quarter our points We and are EBITDA margin

of revenue in of we plan expect will partially quarter. our quarter in $X.XX adjusted capabilities EBITDA, the range into We're Media In forecast and Connect. the depreciation drive exits. higher in acceleration declines, even EPS fourth Our and strong margin year-over-year to the spite and low-end is markets the of reflects driven by to related amortization guidance an amortization, by growth $X.XX and also and strong timing by offset the expansion optimization to EBITDA now higher and coming fourth we $X.XX. impact This greater depreciation the raising the have certain of both

the our increasing a million to are implies range This free quarter. $XXX fourth cash in $XXX decline flow We million. to year-over-year

lower expect While a expectation drag working higher capital adjusted payments XXXX challenging comparison an incorporating from of are collections. and we EBITDA also and on QX growth, restructuring our we

free uncertain February, our than managed in outlook Of separate separation-related as in We this million managing environment. million $XXX increase of up, As wrap we only million approach in cash our to guidance business on diligent and cash to that a timing and in the effective which onetime ranges we adjusted the reminder, believe in midpoint EBITDA, $XX roughly and originally $XX We gave guidance only $XXX is of in in any will and not we is $XXX midpoint $XX $XX drove XXXX. is forecast expect remain of beginning in and costs costs operate are another related million had guidance. of free adjusted the million, planned. after flow estimate lower now than to And prior cash separation. separation-related year-to-date of we our as the took costs guidance the that's than impact the EPS This back more directional in from or we million to on million costs updated restructuring optimization two companies. include the million plan, of way These do updated XXXX, in million XXXX. $X incremental have EBITDA To we remain lower cash separation-related million evidences depending pre-COVID $XXX $XXX our costs costs we adjusted a full-year the down which expenditures. pre-COVID the confident the note, guidance

our the business. I'll of to but this these delivering and impact work updating and to David decisive forward, our ability pandemic, done monitor on we on on Investor adapt has business at update rapid our team has progress to to proud Media X for year manage back reinforced take our look now and forward Connect. as very plan a Day. of continued you turn December We the to go results. actions Kenny including continue I'm and on call our the We closely the optimization the

Linda. Thanks,

me changing renew remind the Let ecosystem. an high Nielsen of this client start Media's media have you, global revenue rate. rapidly in also Clients To a Media retention the has in XX% is contracted environment. continue and segment. role essential approximately we with to

cross-media in While the world. the media course innovation pandemic few the Nielsen's industry and by increasingly have the demanding for even years. years, we a need Media metrics. seen creates as Measurement, Cross-media change an growth and has in de-duplicated TV solutions streaming and past experienced clients provide to audience months industry accelerated digital The Unifi, the unprecedented star. their understanding have Understanding solution continues would that stay-at-home with analytics. total over reaction buyers through measurement north to in disruption linear currency-grade provides media the audience. sellers' a behavior of amount a clients our greater holistic happen surges, few TV, trends the the measurement of fragmentation clear and drastically Audience by these Nielsen's around normally media past of advanced that devices changes is connected In been and is few

with industry seeing are between key our and strong and closely demand We build buyers sellers, from are to players. industry we media alignment collaborating the

in the During currency third we progress quarter, quality Connected management TV. made big of

a Compass an a goods, growth because designed note comparable world not more norms enables by which content the is the vision, launch focus. needed the most These advances in to top marketing audience which expand now Content across are privacy X,XXX open-source true households across clients recent fosters Gracenote consumer their We Outcomes increasingly households cross-media TV built an is Roku, On every measurement establish measurement measurement others. leader aiming we the digital Liberty There by de-duplicated the data which ensuring diversifying which three most any are comparability our on for platform. are by our just it platforms, is are to unreliable across ID XX first worldwide essential discovery for enabling dependence we product from two for include products in protects content. And database world's people. and streaming discovery identifiers as as settlement international mark are the alignment with be innovation Content months. identifier unique and countries. underpinned our reducing the control, ID the on already has makes would that the that the audience Nielsen Global. predicting bigger third-party XX,XXX TV open-source our efficacy also both that Specifically, in measurement I and to YouTube Both and in drives Plan/Optimize, the historically is advertising with has essential with our this us chain. deliver of for and roughly that's throughout resilience leadership through will their in Nielsen. made effectiveness content further led standards difference. and more with and media and the by and understand research advertising to ID, important categories global Amazon we In is our steps and and as changing and The The creates is solution. campaign rolled on landscape. comparability allows an marketing and be fundamentally between operating by out linear Unified existing and across for extremely categories, outcome resilient our This September, sources, outcomes of we've ad the great Nielsen like Samsung of Desk resilient, optimize Gracenote coverage to Nielsen wins is been the Hulu, marketers same around covers platforms. in and We're professional on single in important standardization efficiency content evidenced we to and been data where is real Streaming which increasing, is platforms in of half get AVOD value creating packaged a This and the Nielsen explosion greater and distribution coverage on as validate global expanding SVOD owner must industry, to ID discovery in XXXX audience tagged behavior cross-media by planet, bolstered platforms. underpinned Nielsen ID, an ID audience's that's environment the discovery this Content demand footprint puts the improving and worldwide is up, our of changing over is methodology. sum spend was which including is is Every and Meter, environment and and panel stronger platforms. syndicated globe, popular is is distribution ID consumer XXX X.X, we To The all Nielsen king the addressing and footprint measurement precision Compass, the This in that Trade a predict and in the is on are marketers Connected way content the consumer across is metadata improving channels. around position and of our for pandemic. consumer end, tracking TV. launched in content roughly Comparable, experience market both focused the discovery to building for opportunities everything, need at powerful they To roadmap has Connected to for after full on which global which outcomes. to YouTube during our installed upfronts measurement, piece more TV measurement spend. big the find panel aspiration media to and progress look rapidly. Gracenote our needs next Nielsen Gracenote creates

with go-forward our and well change. executing digital are pace strategy on industry keeping We

across Connected Outcomes accelerated Nielsen attractive Gracenote streaming both new key well-positioned are initiatives the to December expanding with driving and is ID geographies leading Audience for client TV which is the flexibility. the and measurement becoming are we measurement underpinning as players investments with the resilience And ensure Our is global wins standard, our ecosystem. metadata best critical such in to growth, on free And drive can't Nielsen flow Investor I X. business and details revenue in experience. you is wait the our business. margins, with solutions Nielsen with growing share categories like cash to more at Day Compass. media

to thank Let to for I Connect. talented invaluable associates and me turn want commitment again their Connect's worldwide truly partnership.

so work Connect position All company Jim the transaction smooth Advent terrific execute to will as of allow done to by Peck. and with many a standalone a us

I third the into leader work, David Rawlinson, the that of words. like few getting to Before a say quarter details, would

colleagues very we I and are on the business more Thank be immediately pandemic, couldn't pivoted during today. They with the of the the stabilize year. our have results done to we started you, Connect operating the are now proud pleased David. this work sharing year focused the spin,

We continued are retailer major our Advent's serves reputation, excited our and revenue for investment of an growth Advent in the us in fourth and our promise, quarter. changes about new a in expansion this build validation the quarter, CPG and and margin significant as and provides people, the growth industry-leading E-commerce and trajectory, Partnering even an and position. ecosystem, technology, strong the play strong EBITDA with ability it sequential is EBITDA Jim driving to third the accelerate growth Connect in opportunity to upon larger allows substantially our to future. momentum our grow. including Peck our role and

by We and around possible world. associates of talent dedication made have our a been it's ahead, future and bright the the

it back turn me Kenny. Let David to

evidenced in execution challenges second role core and measurement quarter, is retail performance to global the challenges. resiliency third industry. despite Connect's This and with COVID sequentially ongoing in due improved COVID. by despite reflects CPG results, Connect's its the from strong progress strong quarter Revenue essential

which cash optimization execution structure profitability and the time. business, flow to drive of the Connect plan, greater delivered well significant and Importantly, cost expansion positioning EBITDA the over cost margin reset Connect discipline the growth to and of due

key Nielsen during Nielsen accelerating as are On momentum which e-commerce, now the a Connect the platform. has of which strong Purina, become largest with of of leaders online and retailers to tied look innovation, a ad the hoc These new a increasing of value brand just research are of XXX% had increasingly a client impact turnout particularly direct-to-consumer are large win-back competitive portfolio spend the data Connect's supply few Measure but Connect to as Connect client pandemic, its more countries. a from XXX from has COVID, Connect's Predict/Activate, examples initiatives, Nestlé XX attending say Consumer areas over Jack industry navigate would Also, than deployment solutions. a world's as greater had e-commerce others to pandemic. demand Link's chain in includes system the the more pandemic. in increasing. there which market-leading that for side, X,XXX is Bacardi, through record during custom important global event. also and wins their of using essential the Brown-Forman, one insights its the record. as last with and testaments highlight was analytics, In the virtual I of given been are that clients clients such week Connect is revenue, optimize that clients clients and their moved global held and to online the nature and assortment, In They

With is how Nielsen Connect grow. turn for platform, clients. by crowd the sets, that, were empower to Sara demonstrate large time data Nielsen Connect's insights leaders to This the exciting most its powered an Global comprehensive back technology driving for first-hand is this clients and able Connect to decision-making Our to Connect let the call me Q&A. and help

David. that, Operator, open With to Q&A. up line, can let's please? turn you Thanks, the

from Steinerman comes Certainly. JPMorgan. Our [Operator from go ahead. Andrew first Instructions] question Please

about of finished for time. a just XX% remember figure a was year I I conversion of Good figure conversion around much review while. flow up haven't that was remember which goals kind the cash one a I goal. strategic flow free heard the cash free stated towards morning. over on last a

that to Nielsen so, stand, goal sale want the Connect, of does know goal and easier does future? reach standalone And I basis with on that in it a Media to for still make it the

it a she's Andrew, that. this, we are Linda answer let because but I'm modeling of is to committed Linda? very on going to Well lot still it done goal. the

to good from this hear Andrew, you morning. Hi,

are achievable. at little We'll a change. we As the David no Media a right, the you're, much said, HoldCo on is our give this bit was committed XX% company, for goal. to Day, more you but the it perspective Investor certainly still about cash And overall basis, Media that into XX% and very insight but Media from also we we profile an be is But perspective, way us it the the very like. investments the of of as flow the strategic flexibility higher in giving investment achievable given it from think also And a greater think business.

are, was moderating level our our plan. restructuring however, at same an due all CapEx course, We This optimization of time. year, the elevated to

moving Investor and still on that we'll you are committed So to Day, that at details few highly quite more committed also there parts, CapEx. and but a give to moderating

Kaplan from comes question Morgan from Stanley. ahead. go next Toni Please Our

And but improved, growth revenue. you Gracenote was and Plan/Optimize maybe mentioned much auto, I as much. expecting. short-cycle very sports, not Thanks as

pulling could on as recovery of you're improvement to Just expecting have and and you. October Thank whether saw quarter and when additional a examples been some what went into there? clients give see you on back you the

is has level, production continued sports back there. lower came the deficit same the of and Certainly, a while up they say to auto that be had made worldwide some And Gracenote. I would Toni. sports still question, the for at has not on you for basis, Thank some not so

examples. and I think industry. COVID advertisers are doing lot clear when two folks analytics, broadly, a of it's those by that's by very More are So,

that industries of are the of travel, So are tech, goods spending. active, are that not off, like The like active. supermarkets and course industries parts quite are packaged and still

model as adjusting is are an reflects COVID new So recover, certainly economy want to to folks but and would this today the to to I progress we're the business sequentially economy. when predict is here don't to going somewhat sit going and and end general I say to continuing reality. it their see come extended when

Todd Sanford Our Bernstein. from go from next question ahead. Please comes Juenger

if hoping, sort Good your more guess, business Nielsen's both for if to what And you measuring with longer-term, also the I them Netflixs especially and morning, shorter-term, the them like head continued I then, non-advertising and you. that'd clients, them? wonder help and the And video just the affects these your frame their overall be so either to about if relationship Thanks. services, Thank longer-term, days like then business hear everybody. mean in mind, how growth the Disney’s or how growth great. and you I independent existing And more do services, time? with like goes non-advertising industry, how your the services. affects in viewing And could without in the the that role with own love of affects your of I'd Amazons, of supported, your used don't you your what's the to question David, I Hi. shorter-term that and thoughts, ones, ViacomCBSs, non-advertising be over those was think does how what advertising? supported that or mostly

question, lot divide answer. that a that to let There's me to Todd, but

what to across of is on people monetizing content at these purposes, are helpful everything. subscribe get to think when measuring a subscribe or are the not the watching an measuring just whether number a for And a a And platform. on all, full that's the folks of And in platform advertising. ad-sponsored that And they content very us, made view through an comparable I Nielsen, not SVOD we've is been to audience. of progress basis and committed as just lot of audience First measuring all audience we resilient models.

VOX in distributing or whether help SVOD that of can models think Nielsen the it viewed. basis. audience by you were that. does content, covered That That's mentioned, but Gracenote, across got also you goes and model, into I one AVOD was to was do also your our to able you're is somebody parallel. multiple across led They've They you're is audience lot everything, with progress use because track everywhere. I'd whole into ID we've doing content here, content, before models. a valuable all else's NDC A ViacomCBS, in that helps can these when historic including it we also to metadata I proven the is we you're to Measurement the number a to distributing to the clients one. Audience our the understand all and to this audience where get say, that QX, on model to get would those so be the to got I and that distributing watch want own Disney comparable very say another that made, de-duplicated of ID

think I So, really monetization will the I content. to play in role think models evolve going important both. a And we're for

to also the for things very progress Addressable is the advertising and same same are like full making ability think measurement we include create currencies. and committed sure to the in making to is huge evolving I audience

their We're using So, we're success. revenue specific overall tied stream a tied ways. in they different not evolve, in and to new clients. to as they're us our And

Our from go ahead. next question Please Tong comes Goldman Sachs. George from

Hi. morning. Good Thanks.

transferred in leverage You be of the you that year-end, sale having net can net $X of included will the assumptions have billion be how replicated Connect discussed costs proceeds sale of much but times what Connect with EBITDA that's from targeted in four receiving and and to discuss at may figure? shared net leverage that

you why take don't Linda, one? this

it. take I'll So,

therefore, number value. as fair about think should to adjustments. debt-free the to a enterprise an there's And of transaction, $X.X billion get a You

it bit in a let Connect around that. of business been XXX markets. nearly So, me established footprint has a decades little for clarity provide has and first The

XXX sheets. transaction fairly some this entity legal debt-like about makes you balance when items complex a the so on are for And that think

give what areas. high-level So, we So gross across you I price range? are why adjustments purchase don't in in of to range billion proceeds first the relation of a as walk that $X different the net the a estimating are

ones tend again, Those plans business, established. of Connect global those retirement course Some are to a more And costs, is the relate outside and of plan significant of pension and retirement more U.S. business. the to very be the established more

You do global expect the are associated to that an to mention adjustment still balance is liabilities there that obligations. debt-like on our as This there some center closing mostly data with included plan lease amount arrive heard we items we have sheet be And David then across at at this there's restructuring equipment debt-like is for the servers. optimization for entities, net of equity other transaction proceeds number. course, add do There's items few of small quite a smaller. the even very mix a And taxes. they with though but then, and And various individually sales. they're up, complicated large asset sales a individually

of so continuity excess the And transaction with thinking leaving in we're being important also $XXX done provide there. to vis-à-vis think to way of the an entities, so, refine also but will still cash And months business working again X% basis and structure various we be higher we're we we capital and continue in until that's Several Connect taxes at the our of of level just there in to about and be the adjustment is and levels done business in work growing. for now million transition. transparency some for is the roughly estimates. more range, close, business but the then the thinking it then a our minimum right more we're And more work

to As rates done purchaser. debt, it be far the as debt the will relates separately by

about instead, net of for as deleveraging being no that just in I think And a there's $X that. you the Media So proceeds from perspective. you available billion debt walked in assignment really through can

question that asked. provide but some you think exactly I think Not you that the at it probably I helps the clarity. So question asked, hits

Tim next Our comes ahead. Nollen Macquarie. from Please go from question

Hello? Is that me?

ahead. Tim, please go

hi. Oh,

Hi, Tim.

Hi.

question it's point in at David, throw, now? And you're complicated it? to landscape. Is a media but component Nielsen's Sorry, my I more it's a know but much name. I I didn't I got I mean or Can greater own less going you, of say, even role important more measurement hear guess, what a softball to

imagine So for need much there's services. I your can greater

how you ways you exist, use a in ID, there's common However, the media to of now to attribution I referred I relate measure as this of is Unified the what scope could, see which to. and of question, that sort of that those common Nielsen one that wonder X.X, industry. is lot kind identifier the if does across to the ID other answer of the didn't tool a because

much sense? little new confused I'm how how face. just about bit So that a competition important you just but you Did are, make

to audience add able be percentage of they yield, trying and little put what of up they even that. go they that on measurement used a be to me Yeah, of able an course. to difference revenue able to measure and and ad and platforms, understand that they an as on the platforms put profits, some you targeting. so on similarly, measurement, if a order [indiscernible] takes everything, And reach. listen, need make to – some optimize by be deeper There's they that own addressable they which on And And big manage is basis, I'll the to have inventory into their adjustable ad-buy, value need between all they're sellers and they – inventory metric. in that if manage to let so XXX% other inventory to to their or to buyers, sure single need a have to some

to So, this common for and do. need pretty is measurement essential harder it's

side, whether the the a mobile on to a or measurement with made I a say web would TV progress is one we a of broadcast Nielsen to segment, it's get ID So, a signal. connected a person signal, signal, identifier phone the signal,

happen data of of of not long been in key. we're to of while a of they clients, to make precious a methodology measurement work as for sources. all that a lot that And – And as with share number one was has all that or that with of collecting in connecting we lot did really it So, data our the targeting. purpose us

have we last this Trade morning with around we consortium targeting, to of been mentioned on possible of other is in does a in reconcile. total? is platforms with partnership all how lot around I one made that make for open-source working Desk And the it the what we so, important want do reached other announced ID. The you quarter and ID the members we and the what to this so, Unified here, the to I audience, that targeted it And moves relate

contributing just own what as improve also we'll have our own methodology as and so, with ID ID love get the from we other privacy-friendly, work to ID improving back our open-source. that we'll participated it, who are well. that identifier by we And players And because with it's make platforms, Unified their help

To make households couldn't a to that afford MRC be role of proprietary we've audit in sources. to risk a And data science, role with real like the a to plays So, digital identifier really across validate that Folks that important measurement, actually met our we all to a from of really still get sure we that – essential. lot positive false to be any science isn't all vital cannot of still the panel have done bring it's I going data think data ID, there's important us. there verified. in a or really

And anybody needs so, could believe that as that And else industry do think effectively measurement, really not more up a I the than given de-duplicated robust, I resilient, we're Nielsen, building I such a all do up that base. auditable, ever. strong as and that think adds to

really big step this has and under So, because for we else ID. anybody cracked it's it targeting while methodologies, us, bringing been silos other think folks we were a now are are finding one in doing have. forward And the new way I even measurement don't we're together

that's to targeting, be Compass But in why of of to partnership part top targeting by with we're data different categories increasingly, going That's our other services. doing doing financial for side, also Plan/Optimize, of put a attribution play attribution folks XXX CPG, was auto those to think, need their look of the which important partnership think, in important other role But colleagues the sources able it. to always to at a On really attribution. I with have, also but part are that and in validation way for with I Connect is who two. be connecting third-party on we

I get So, think be it's that's think – to more do where yeah, to And ever that right. we're I than able going. vital

increasingly is platform. ways a what consumer of Gracenote second a that The being Audience second important And and I to lot discover Lastly, leg of our on after scale has I'd essential, already say signing think is and And clearly content Measurement beyond important. content continue the will keep standard, important a Measurement. the standard Thanks. the around leader to metadata is just Audience we to continues that which establish be world. deals think I

go Please comes Ashish question from Bank. from ahead. next Our Deutsche Sabadra

Thanks sale. Hi. ask question. for I taking my a on this Connect Maybe question just if can follow-up

if benefit question, But up one-time third you quarter of that's I performance-based expansion lot margin the we also talked from maybe well. And provide my you of for also step helping any if big main as a T&E pretty and out significant just on warrants, in or any think such is there can saw then wondering mentioned COVID, about I quarter fourth And pretty margin. any was initiatives. good color those the push investments Thanks. the implies the in warrants? a as guidance you the a lower

Perfect. I'll first question. can take take the second. the Linda

the certainly nice for It a a put today, as it just business down for that. the tremendous have it's the upside Advent warrants, potential Advent road. warrants has the tremendous sweetener. I that if value I deal Connect I big success but of is wouldn't on any has plans clearly, to the value So, of happy the it. potential think listen, and, and specific on given sweetener intending a we're view And we're

the side? on Linda So, margin

see that. you've already Yeah, to analyzed I’m glad that right. you're

nice in twofold; really the hold costs you that well and expecting temporary takeout, it's which the are margin again permanent We really cost once QX. QX, as in took referenced expansion as

this, cost many reductions And costs are cost still the cost about will benefit that in reductions both takeouts move the those those we've in temporary of temporary Recall permanent past, $XXX the being and temporary into QX. we range million so enjoy as of out. and we the as talked

to well. extent we then will return and the relief As costs, return, COVID as those revenue from costs, see they're variable

for initiatives target our before temporary evolving about disciplined, executed And permanent Investor on And it have But before suppressed, our really the XXXX the other and well, And the permanent achieving track of time investments top of and growth that our come does then becoming some incredibly you Day and our in view And smaller and December. teams back. markets on half a until culture cost the is key get said, million decision a QX on our and cost think but benefit toward of will on tremendous you're starting perspective to takeout. some QX on $XXX I in as more travel, a half margin broader they entertainment well to From much a show as in rationalizing really from remain is will so the we've progress course plan bit very this. forward-looking EBITDA our exit saw some that, really the we'll a portfolio. they're an the cost, smaller the of and businesses. come of cost back, at prioritizing We're more really And a efficient, And company, be takeout. we it of vaccine. completely give the you made in little seeing basis more we've cost net optimization perspective, of takeout to what investments.

Manav from Barclays. from comes ahead. Patnaik question next go Our Please

versus is capabilities partnerships you a wanted of or goal flavor a think plan level? out to Is speed M&A what ultimate morning. restricted a have just to you're and terms ask wanted the you up little that debt it of I good measurement already maybe your just an but well have lot here. signed I get important you've question up, you you at versus trying go as you, acquire more of much to you how are Thank to. just to part of in do hand guys the you need the this of things with

structure integrated by I that's been the of the move to think way into parallel able good efforts faster, you, consolidating our Thank data on X,XXX We've about in I we've streaming appreciate we've to made And an two been meters, to the to platform-based And ID. a hand. Nielsen get feel number a next Manav. way others. MVPDs approach. develop lot able and to of honestly, we've I question. quite progress pretty our to able three with deals It's way better the the XX,XXX months. been way

that, always on there win-win. M&A we're So, very road, to could developing and we're and faster. look I'm a a I so it's just get less said, Linda at going is as think a that there doing with good function specific capital, whether has that small

to the So, we history are really We're strategy have in. we we there look some at that X adjacent Audience capability better here, into to into few businesses. in or even have. the could if certainly are of Yes, want accelerate I X we're Gracenote off think win want our we or unlike only I the on leverage the We at trying it places radar. think Outcomes we'd businesses that do been times would accelerate to to a the the acquire versus not accelerate times I spin. have Measurement, have business But go around things But it.

try sheet So, a I stronger right. going to is continue balance having think We're do that. delever to to

Our target is below that.

products. sheet making as first resilient to be our our going to priority our strengthen and So, is Nielsen balance as

it take we've right the something in do got the the given think do active look flexibility don't I but we do M&A there. along. there's Media decision comes little horizon, we'll that away if a at big invest on out have to so an And more And Connect at what's and time

go question Jeff Our Meuler next from comes Baird. Please from ahead.

morning. you, Thank good

you're, it And on the And to downplaying than around that starting of, it's kind part instead value the of modest go EBITDA. of versus context looks like a think, ask so times warrants X X is proceeds X So deleveraging event, likely of of motivation net primary basis, that. the I a a times. as with a less the spin I sale forward in

transferred debt-like have these context the with what are of the maybe transferred you in if getting spin. could, of the over help gotten would exit the of all But Thank assuming frame kind decision I'm here. costs multiple first, that just you. is So

All in with right. two take it Linda. parts Listen, I'll

four reached a On predictions. unanimous valuation the was board the of One decision versus first part, using course criteria.

and part and have this was the company because Leverage Connect. substantial second public And a How we lot this traded enthusiasm certainty commitment strategic is all is deleveraging, of The actually have a certainty, big is unknown, this as helped. of would certain. of but a was it. important is plan which lastly, to

to execute private a so, as looked easier and we at And execution company company. versus a public risk is this

looking the and affected multiples. us I we was a on to belong – little all board going – So, for and all at the decision to more would came deal criteria, items four have were specifics that about all for and we your to as the they how enterprise. bit came talk let do positive think this this four I'm right a that where Linda debt-like for thing the

So, Linda?

large. But currency, million course, transfer to RemainCo at you're these million if in pool to fair the covered we're And it have plan. to would scenario, are that relatively the simplest well more but of a environment and are number about sensitive obligations and that of looking changes the a to that have assumptions under it the relieving personal purchaser, obligation pension probably think are those is that foreign point, transferred $XXX including in use as as obligations example. across the directionally, think spin demographics are an from some that a a way $XXX items pension assumptions, retirees is also the of pension to the obligations. as to in, I'll of I rate debt-like just interest

think the the we that of from an and will the strengthening And RemainCo get a sheet. benefit relief nice about balance as overall so side is of we business,

those we feel on the And from have a EBITDA obligations balance to but how to think strengthens transfer become for and portend really XXXX items our good about about come multiple, that of we RemainCo removes net-net, debt-like it. perspective what as our we for our refine that company. we liabilities and more might So, and as really think sheet they these adjustments it forward-look

ahead. Salmon question Please next comes from from go Our Dan Capital Markets. BMO

morning, Unified wanted Good Great. I on to Okay. ID everyone. follow-up David, X.X.

between then federation broader like broadly? is interoperability more play. to the the solutions? roles on would hear thing about same on your very And interested difference you role specific of expand mentioned a other, do on see Is Measurement or Audience the details other Can some those there. in high-level this, question Or mind You have and or that? be there your members for a a to sounds type It specific it ID are you those of thoughts iteration Nielsen? in Thanks. the one

Yeah.

So, this the so partnership to because it's important morning The first announced vision their all, Desk ID. of on and Trade Unified

as clear industry targeting around and to talk Jeff very Because, that So, both. is he very I speak there's role bring Green, the think are should and partners said, for the if you to specific most the needs I've which other a it's himself, of measurement platform. to

taking with everyone our to possible. conversely, a it, I to allows on continue including ID to us so, insightful resilient helpful and to who uses And our getting make going and the also open-source here aligned think, clients. us as is and the lead measurement and idea, role Nielsen get that be measurement And contribute really back and as

yeah, around clear a really measurement. think I role So, there's

devices in TV, other common linear, use and connected so streaming you've I view the on other is think home. say and useful measurement frequency – ID a get connected in don't I the is component. region thing It and component that we metrics a a to a shared of think I'd measurement component the got metric, is, simultaneous. out Nielsen So, are across is second in ID home order do ID to

So, lot those to having that as There's a right we've also a you that improve There's estimate. the still we helps of lot all got still only universe of data it of still data critical. sure ID component. demography that one together, measurements. all make a lot in put of across it's comes There's But a is big work science.

not component it's but could So as simple measurement, a ID. as on it's of measure you just

They there'd simpler, They're I not models. folks don't seen think we've who lot be a have other hold And lighter-weight up. mistakes. of tried this with as reliable.

You can't currency. use them as

in insights. You component, a a have used can But use for that currency, our and measurement here why the obligation and total is that's we measurement as is answer. it bigger ID but not

Our next SunTrust. Please from ahead. go question from comes Matthew Thornton

if Hey. Good question. for two taking more Thanks the ones, housekeeping-centric could. I everybody. Maybe morning,

little a temporary talked you Linda, as the of some well First, cost about the cost as rationalization bit program actions.

in you we secondarily, current, stand But year and next can shifts where that some ultimately And then, that of And already the the little on the versus the what's this terms where update in gave and as much. flow, we and then, actions, similarly, split as to year just in year thinking just of number the temporary just total of us the what program? trying side I be about so a there. cost us bit. costs thinking free color should you today? cash going kind I'm Thanks previously think On separation-related kind it was we Media to relates on kind are with then on we of update kind what's the side, of what are Media this

Linda. All yours,

Sorry. Great. Thanks.

– doesn't remind they're which those that little and impact using each impact – out associated pretty the to impact half across as those, costs good These businesses, range that and about base and of did doesn't are a pushed you XXXX mention in our plays half progress Connect, businesses. but little expense more $XXX it earlier their but because you great a really some some got out of important temporary for later, the and be they're and it exits costs revenue. overall So, The then their of businesses. to first but sorry, but of does Media as million it largely bit half-and-half on for of nature Media the because weighted our all low-margin did in the $XXX in versus of margins. towards We directional, million EBITDA Connect estimates. – variable with the And are are it's in plan, just think of we're I see about I making the XXXX optimization you

basis. estimate us think And that's like-for-like we if so, of the about more think why a revenue will impact what saw on be refine that we you

we I'll original one-time you estimate to costs, we the think million right, in we million about you're XXXX. $XXX $XXX and had earlier range for refine As the the that did take estimate. that an back separation-related year, in was to

million be in in here about and costs the sit costs, $XXX million we are today, we cash to and referring that are estimating million XXXX range all to, in these $XXX to I'm as to these XXXX. $XXX Now, down million $XX

So, I the come range down definitely has as moderating view that. be a sales spin been there's of should we costs what guess, versus – of been little comments a a top-end of closely. managing on reading the I've bit a we've scenario has costs a the bit little point There of in on And of a are made and these scenario. separation-related these announcement, couple

this First, year. made point systems financial of the of progress of X our good separated we physically as October all having have to way really the

required because in which required jurisdictions for separation, of more taking So, government we remind were it companies. all and the that was said, were the we so that closed And down the the many calling in the separating tremendous as QX, longer because instead of I'll approvals necessarily you, various around take two we I'll the being you re-timed also back environment. work progress in when work COVID of were but wasn't it great the offices because being and spin world, the QX. already in

the separation-related updated to $XXX of And really in our $XXX the a XXXX not in $XXX largely are XXXX comfortable estimate because for in are scenario, why sales $XX a momentum, that is have for million with million spin the separation. which So, range. on good range markedly and we to costs momentum versus cash for already place they million in million different we the

Please Our ahead. from go next Securities. question Fargo comes Williams from Wells Jake

Good morning, everyone.

Jake. morning Good

set or Are and Just license we a any data there Media on costs should the from question revenues Connect. are deals material anticipate that that? being quick with up

got all want to specifics. companies. don't you think both Linda, do It's to small comment? I so. pretty those You've

Okay.

moving to companies. both basis. reasonable we we ongoing in that terms connection the it right right of move needle a are left to a small the we as we negotiations are came the to the think on felt of cash pocket, the much too think And is best something interest numbers it from they big more sale, not businesses, But an transaction. Yeah, think are And that pocket, to we an like you intercompany the both what because and of not long-term about in noncash point out into of environment economics environment. it goes with are on out

Our from next McVeigh from Credit Kevin question go Suisse. Please comes ahead.

leverage balance allow forma from like Great. the And core pro Thank industry. Jim's only you. the more not what would an as sheet, was leader the business Hey, organically in invest great to opposed given congratulations sale. the in does to the have the if I spun? looked on improved business, a guess aggressively M&A, that you been but again,

a Listen, already. we've invested Thank think Kevin. I lot Yeah. you,

core But us having businesses, And optimization on that as to committed efficient our in and sorry, Gracenote, a just has – very improve focused so us in Outcomes, very believe Linda investment said, going we're doing to way. and continue strategies. invest. investment I'm really plan, smaller helped I Measurement, The portfolio to we're really Audience our our focused exit

on I high on time allow if the have But this of continue some M&A to flexibility feel That or over of think shape like discipline need investments in right us kind we over-invest. it I creates and we good a something. to want So, we Media. we're to level I don't to room see does do think said,

actually through we're getting think I better results focus.

question Please next Our go Richard ahead. from Arete. comes from Kramer

the us a but the impact on MRC Thanks whether been its very Ad I how it really going quit of DAR of was very And news you to has was seems sort or the in XXXX asked Ad Digital behind company's Ratings, ago as of central that presented Can hiatus. had future to a setback. know time this Thanks. some give this long revenues reasons in years this? is Digital development, much. future? Nielsen the since see And recently you have there Ratings to product few David, like somewhat on a

you. Thank Yeah.

the to been earlier as with with things. on I that where MRC talking getting combine so one going So, about and cross-media measurement, we've Measurement was we're unified that, working Audience can we

very do believe but It was we So, while cross-media it very identifiers measurement. one market, relied in DAR a lived single source. helpful, I by the it's from can helpful think been on to we And vacuum. better a creating

the all that advantage they whether the a other so migrating, products. be we're I ID audience signal. Nielsen it's And all making one or off and it over take broadcast digital can Audience Measurement in is a think it's of the investments other all time, will thing, So signal

relaying to it. in greater at so, Day on explain Investor that we're into out, going to detail that go And

and other sure it away on think a trade this to if you're the Ad which auditing Nobody do. we in to this to this. were any really comparable make is important else we auditable, in be all doing is just it. And the needed ratings and them is going. is play They way improving where walking Digital making we So quite from role in important with not it them have knew MRC we Ratings, same the transparent going way

quarter So, with this last is the progress all and out strategy lay have on a just QX. consistent made to in started we lot of

to it This concludes Q&A closing of portion call. would Kenny back David to I like And turn our for the remarks.

wait especially and working and yesterday. will we virtual being confident Jim transaction you. commitment I the December shared at partners. for start the grow that the the highlights see sees call sharing since on evolving with today's your still some an landscape. X that date to fun. to we I've is I side, good and And Thanks, the partnership making needs to we're very be for colleagues of solid of my want by I and Connect thanking on that increasingly to Hey. those progress Investor dedication succeed Advent I Day. International. on look everybody world on Thank in everybody, and And more complex with only Media enjoyed to after of we'll but there. moved and today, product again joining all Connect them am for you road really address media will closed, I Connect map we Peck hope forward miss can't our around

this Ladies and participating. you for call. again conference concludes gentlemen, today's Thank

You may disconnect. now