Nielsen to Separate Into Two Global Companies

• Nielsen Concludes Comprehensive Strategic Review Process
• Announces Plan to Spin-Off Nielsen's Global Connect Business
• Separation Sharpens Strategic Focus; Allows Each Business to Most Effectively Serve Rapidly Changing End-Markets and Invest in Growth Opportunities
• Each Business Is Well-Positioned to Accelerate Growth and Profits Over Time
• Developing Fit-for-Purpose Capital Structures and Allocation Strategies
• Nielsen to Adjust Dividend to Strengthen Balance Sheet Ahead of Separation
• Provide Added Flexibility to Invest for Growth
• Nielsen Also Announces Third Quarter 2019 Results, Reaffirms Revenue, Adjusted EBITDA, and Free Cash Flow Guidance for 2019, and Increases Adjusted EPS Guidance for 2019

Nielsen Holdings plc announced today 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.

David Kenny

"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," commented 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 David Kenny, Chief Executive Officer. 

"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."

Creating two separate and independent publicly traded companies will enable each business to:

• Drive results with a singular focus and an independent structure that allows faster decision-making.
• Implement distinct, fit-for-purpose capital structures and allocation strategies aligned with growth plans.
• Benefit from strategic flexibility to invest in growth opportunities.
• Create compelling pure-play investment opportunities for investors by driving accelerated growth and profits over time.

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.

With the completion of the strategic review, James Attwood resumes his role as Chairman of the Board, effective immediately. He had been serving as Executive Chairman to oversee the Company's strategic review and Chief Executive Officer search.

After the separation is complete, David Kenny will serve as the Chief Executive Officer of Nielsen's Global Media business. Nielsen has begun a search for a Chief Executive Officer of the Global Connect business which will consider both external and internal candidates. Additions to the management teams and the composition of the boards of directors for both companies will be named in due course.

Third Quarter 2019 Results

Separately, Nielsen announced today its third quarter 2019 results, reaffirmed revenue, Adjusted EBITDA, and free cash flow guidance for 2019, and increased Adjusted EPS guidance for 2019. Further details can be found on Nielsen's website at http://www.nielsen.com/investors or on EDGAR at http://www.sec.gov.

iHM Reports Revenue Increase During 3Q

iHeartMedia, Inc. today reported financial results for the quarter ended September 30, 2019. IHRT completed the listing of its shares on the NASDAQ stock exchange on July 18, 2019.

“During the third quarter, our integrated multi-platform approach to meeting listeners wherever they are continues to drive our strong performance, and we’re seeing momentum across all of our businesses - from broadcast radio to digital, social, podcasts and live events,” said Bob Pittman, Chairman and Chief Executive Officer of iHeartMedia, Inc. 

"This quarter, we advanced our offerings of goal-oriented marketing solutions to advertisers, expanding our addressable pool beyond radio. And we continued to strengthen our leadership position in our podcasting business, announcing multiple new partnerships and a slate of exciting new content. Looking ahead, iHeartMedia is well-positioned to continue to grow our leadership position in the audio space.”

“When iHeartMedia returned to the public equity markets, we set clear goals to increase our share of radio advertising spend, tap into TV and digital advertising revenue pools, and extend our leadership in podcasting and drive sponsorship revenue,” said Rich Bressler, President, Chief Operating Officer and Chief Financial Officer. 

“Our results demonstrate significant progress against these goals and we are pleased with the revenue growth we’ve seen across the board. We continue to work to build long-term shareholder value, and de-leveraging remains a key priority.”

NYC Radio: Local Programs Return To WBAI-FM

New York non-com  WBAI 99.5 FM is back on the air Thursday following a judge’s ruling in a lawsuit brought by its employees after it was abruptly shut down last month, according to The NYPost.

“I think it’s time to get WBAI back on the air and back to fundraising,” Manhattan Supreme Court Justice Melissa Crane said after ruling from the bench Wednesday in a lawsuit that laid-off station employees brought against non-profit parent company Pacifica Foundation last month.

Local programming on WBAI — which had been on the air since 1955 — went silent during an Oct. 7 fundraising drive, and the local programming was switched to a national feed.

California-based Pacifica cited mounting financial problems — including WBAI’s operating at a loss — to justify the closure.

Station employees filed suit in Manhattan Supreme Court the same day, claiming that the executive director violated the bylaws when he “seized control of the station in the middle of the night, padlocked the doors, and took the WBAI programming off the air,” the suit alleged.

Since then, WBAI and Pacifica have been waging a bitter legal battle that has gone to an appellate court, then to a federal court and finally back to state Supreme court.

Crane’s decision specifically hinged on two Pacifica board votes. One was taken on Oct. 12 upholding the closure, but four board members were barred from voting due to an alleged conflict of interest.

In a separate, Oct. 20 vote, the board annulled the decision to shutter WBAI.

Crane upheld the latter vote and said that the earlier one was invalid because three of the four blocked members didn’t actually have a conflict of interest. Crane said she was “disturbed” by those members being “disenfranchised.”

The judge did not specify when the station must go back on the air, but Arthur Schwartz, a lawyer for the employees, said the executive director told employees the station would go live at midnight.

“My hope is that they [Pacifica] comply. The station is ready to go, and all they have to do is switch the feed back for the studio at the antenna at 4 Times Square. There is a crew ready to go tonight if it happens then,” Schwartz said.

A lawyer for Pacifica, Kara Steger, said that the company plans to appeal the ruling.

KY Radio: iHM's Matt Jones Off-Air After FEC Compaint

Matt Jones

Kentucky Sports Radio host Matt Jones, who's toyed with the idea of running for Senate next year against Senate Majority Leader Mitch McConnell in 2020, announced Wednesday he won't be on iHeart Radio in the near future.

"Due to the Mitch McConnell complaint filed this morning with the FEC against me, iHeart Radio has asked that I not be on the show in the upcoming days," Jones wrote on the Kentucky Sports Radio website.  His KSR Show is carried on some 35-affiliates in Kentucky.

According to USAToday, the Republican Party of Kentucky filed a complaint with the Federal Elections Commission on Wednesday accusing Jones, a Democrat, of "serious violations" of regulations, including accepting corporate contributions toward his campaign and failing to report related expenditures.

"The complaint is absolute nonsense and very disappointing from someone as powerful as McConnell," he wrote.

"I have said repeatedly in public and in filings with the FEC that I am not yet a candidate and I haven’t used the show to raise money or talk about my Exploratory Committee in any way. Nevertheless Senator McConnell has complained that having me on air is unfair and the man who speaks often about the importance of free speech and the exchange of public ideas has decided to cut off mine."

Let me just say this...I do not blame iHeart Radio. They have been very supportive in this entire process and wonderful to work for

I understand why they don't need the fight considering my decision will be coming soon.

I am disappointed but not surprised about Mitch McConnell

— Matt Jones (@KySportsRadio) November 7, 2019

He said if he decides against running, he hopes to stay on with iHeart Radio and KSR "into the future."

"For the time being however, I won’t be on the show. I had hoped to do the show for a couple more weeks, make my decision and then take time off to finish my book and regroup after a long process. Thanks to Senator McConnell that time will apparently start now."

And The Most Popular Christmas Songs Are....

P1 Media Group and Nielsen’s BDS have released a list the most played and most streamed Christmas songs from the 2018 Holiday Season ranked among likely Christmas music radio listeners.

P1 Media tested the 40 most-played holiday songs (all US radio airplay) and the 40 most-streamed holiday songs (all US on demand audio streaming providers such as Spotify, Amazon & Apple) from 2018. There were 17 songs on the 40 most-streamed Christmas list that were not on the 40 most-played radio list, for a total of 57 songs.

For the third straight year “Jingle Bell Rock” by Bobby Helms is America’s #1 favorite Christmas song. “Christmas music’s appeal remains as strong as ever among American radio listeners whom listen to All Christmas stations ‘frequently’ or ‘sometimes’ and personally enjoy Christmas music on the radio during the holiday season” says Ken Benson, Partner and co-founder, of P1 Media Group. “As we suspected, radio is underplaying some of the most streamed Christmas songs.  Two songs (Michael Buble & Frank Sinatra) didn’t even make radio’s 40 most-played Christmas songs, yet landed in the Top 10 among this sample of Christmas radio listeners.  Streaming is one of the most valuable resources available in our music meetings today” Haley Jones, Director of Radio, Nielsen BDS Radio.

Key Findings:

• Two songs that weren’t among the 40 most-played Christmas songs from 2018 “Have Yourself a Merry Little Christmas” by Michael Buble and “Jingle Bells” by Frank Sinatra both landed in the Top 10, number 6 and 7 respectively. Michael Buble ranked way down the chart at #666 on the 2018 most-played chart and Sinatra’s “Jingle Bells” ranked #49.
• The Holiday Classics rule the Top 10 including “It’s the Most Wonderful Time of the Year,” “Rockin’ Around the Christmas Tree,” and two versions of “Rudolph the Red-Nosed Reindeer.”
• Three different versions of “Santa Claus is Coming to Town” and “It’s Beginning to Look a lot like Christmas” made the list.
• The Christmas standards test higher than their contemporary counterparts. 16 of the top 20 testing songs are classics recorded between 1951 and 1970.
• Two of the newest songs we tested scored exceptionally strong with 18-24’s. Kelly Clarkson’s “Underneath the Tree” from 2013 ranked number 25 with 18-54’s yet ranked #2 with 18-24’s. Ariana Grande’s original “Santa Tell Me” from 2014 ranked number 51 overall and Top 5 with 18-24’s
• 48 of the 57 Christmas songs tested extremely positively with an appeal score of 70 or higher on a 100-point scale.
• “Baby, It’s Cold Outside”, the most controversial Christmas song of 2018, ranked #27 overall with a total appeal score > 70 in all demos, except 18-24.
• All-Christmas Music stations have broad appeal among Men and Women 18-54 with 70% of the sample saying they “frequently” listen to Christmas music on a local radio station during the holiday season.

Fox Revenue Rises

Fox Corp. said Wednesday its quarterly revenue rose 5%, boosted by strong growth at its television unit and higher proceeds from its Los Angeles studio lot, which the company is leasing to rivals.

Fox, which was spun off from 21st Century Fox earlier this year after a sale of most of its assets to Walt Disney Co., is now built around Fox News, the Fox broadcast network and television stations and Fox Sports.

Lachlan Murdoch

According to The Wall Street Journal, revenue for the quarter ended Sept. 30 was $2.67 billion, roughly in line with analysts’ estimates, according to FactSet. Revenue at the company’s television unit grew 6.2% to $1.36 billion, thanks in part to a 14% increase in programming fees from third-party Fox affiliates and higher average rates per subscriber. Cable network programming revenue rose 1.6% to $1.29 billion, primarily because of an increase from pay-per-view boxing and higher sports sub-licensing.

“Our strategy to build Fox around live sports, news and event programming is producing results and delivering audience growth and engagement faster than we expected,” Fox Chief Executive Lachlan Murdoch said during a call with analysts. He mentioned “The Masked Singer,” “WWE Friday Night Smackdown,” and “Thursday Night Football” as programs that had performed well in ratings.

Fox’s net profit fell 17% to $499 million, or 80 cents a share, from $604 million, or 97 cents a share, a year earlier, primarily because of a change in fair value of its investment in Roku Inc. Excluding special items, earnings were 83 cents a share. Analysts were expecting adjusted earnings of 70 cents a share.

Fox on Tuesday agreed to buy three television stations—two stations in Seattle and one in Milwaukee—from Nexstar Media Group for $350 million and sell two others in Charlotte, N.C., to Nexstar for about $45 million.

3Q Revenue Drops At Nexstar

Nexstar Media Group Wednesday reported financial results for the third quarter that included net revenue of $663,575,000, down 4.2% from $693,015 in the same quarter of 2018.

The results reflect the impact of $34 million and $1.3 million of one-time transaction expenses incurred in the quarter from Nexstar’s acquisition of Tribune Media that closed on Sept. 19.

The revenue numbers break down to:

• Local revenue of $208,338,000, a 10% increase.
• National revenue of $81,875,000, up 14.3%.
• Retransmission consent revenue of $294,808,000, a 3.7% rise.
• Political revenue of $10,899,000, down 84.5%.
• Digital revenue of $58,137,000, down 16.1%.
• Trade and barter/other revenue of $9,518,000, up 16.2%.
• Third quarter net income came in as a loss of $5,178,000, a drop of 105.2% from $99,828,000 a year ago.

Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Media Group, Inc. commented, “Our active third quarter and recent strategic initiatives have positioned Nexstar for its next free cash flow growth cycle and significant near-term leverage reduction. In connection with completing the highly accretive Tribune Media acquisition in September, we divested 21 stations and completed the transaction financing on more favorable terms than originally anticipated.

"Collectively, these actions reduced leverage at closing to levels significantly below prior expectations. Yesterday, we announced a purchase and sale agreements with Fox Television Stations which will position Nexstar as a broadcast and digital leader in the fast growing Charlotte market and add to our already strong presence in the Carolinas. The Fox transaction furthers that leverage reduction effort and these transactions reduced our pro forma net leverage ratio at September 30, 2019 to 4.3 times. With our expanded and diversified operating base, expectations for significant 2020 political spending, and the benefit of recent and soon-to-be completed distribution agreement renewals, we remain confident in generating record levels of free cash flow next year and reducing the Company’s total net leverage ratio to below 4.0x at December 31, 2020.

Perry Sook

“During the third quarter and more recently, we entered into new network affiliation agreements with CBS and FOX marking Nexstar’s successful completion of a majority of the outstanding network affiliation agreement renewals for 2019. These renewals provide confirmation and visibility of our net retransmission revenue growth expectations in 2020 and beyond.

“On the operating front, we worked quickly to optimize our platform and leverage our increased scale with the expansion of Nexstar’s news bureaus, local news and other programming in several markets. We also named proven broadcasting industry executives from Tribune to drive growth at WGN America and through content acquisition; from our distribution revenue streams; and to oversee communications, media relations, employee communication and the company’s intranet and public facing corporate website. In addition, we appointed operating leaders to oversee broadcast and digital in key markets including Dallas, Fresno, Des Moines, Tampa and Spartanburg and elevated members of the Nexstar operating, sales and finance teams to new roles to acknowledge their ongoing contributions to Nexstar’s growth.

“At the time of the Tribune closing, we raised our anticipated first year transaction operating synergies target to approximately $185 million from approximately $160 million and the Tribune Media integration and synergy realization plans are proceeding on schedule. Taken together, these developments are reflected in our pro-forma average annual free cash flow guidance for the 2019/2020 cycle of approximately $1.02 billion which represents nearly 60% accretion relative to the legacy Nexstar operations. Given the Tribune acquisition was a cash transaction, our outstanding share count remains at approximately 46.1 million and we remain focused on the disciplined management of our share base and capital structure as another means of enhancing shareholder value.

Sinclair 3Q Media Revenue Climbs 47%

Sinclair Broadcast Group Inc. (SBGI) on Wednesday reported a third-quarter loss of $60 million, after reporting a profit in the same period a year earlier.

The Hunt Valley, Maryland-based company said it had a loss of 64 cents per share. Earnings, adjusted for non-recurring costs, were $1.15 per share.

The television broadcasting company posted revenue of $1.13 billion in the period.

For the current quarter ending in December, Sinclair said it expects revenue in the range of $1.6 billion to $1.63 billion.

The company expects full-year revenue in the range of $4.22 billion to $4.24 billion.

Chris Ripley

According to the Baltimore Business Journal, the CEO of Sinclair Broadcast Group Inc. remains confident that the TV broadcaster has the advantage against Dish Network Corp. as the companies continue to negotiate an agreement to end a prolonged blackout of Sinclair's regional sports networks.

Hunt Valley-based Sinclair's 21 regional sports networks have been dark since July on Dish and Sling TV when the Walt Disney Co. still owned the Fox sports channels. Sinclair closed on its purchase of the channels from Disney for $9.6 billion in August. Sinclair CEO Chris Ripley provided an update to analysts on Wednesday after the company reported its earnings. The blackouts are continuing even as the NBA and NHL seasons began last month.

Before the Fox sports deal closed, Ripley said Sinclair assumed Disney and Dish would reach a compromise. His optimism contrasted from the outlook of Dish Chairman Charlie Ergen, who told analysts in July 29 that "it doesn't look good that the regional sports [networks] will ever be on Dish again."

Sinclair could use the regional sports networks as leverage when its next round of negotiations with Dish open up for local broadcast channels. Ripley said a sports carriage agreement would be a "very relevant factor" in future negotiations.

Sinclair will be rebranding the Fox regional sports networks but has not unveiled a new name for them yet.

Black News Channel To Launch Jan. 6

The Black News Channel, an original 24/7 news offering to serve African American viewers, will flip the switch in the new year.

BNC, which had planned to launch Nov. 15, pushed back its premiere to take advantage of fast-moving digital delivery platforms, the network announced Wednesday. Those carriers include wireless cellular services and streaming video services that offer live linear programming.

Being on smartphones will make it easier to attract millennials, 98% of whom have cellphones, which are the primary news device for more than two-thirds of them, said J.C. Watts, co-founder and BNC chairman. "Those devices on a day-by-day basis become more critically important," he said.

The network expects to reach agreements that would more than triple its audience size, beyond its originally estimated 33 million cable TV and satellite households in top African American TV markets, including New York, Los Angeles and Atlanta. Already secured: carriage deals from Comcast, Charter and Dish Network.

Jan. 6 will give us a chance to be on more devices, and we think that makes sense for us in terms of serving our demographic, and it obviously makes good business sense," Watts told USAToday.

Watts, a former Republican U.S. congressman from Oklahoma who served as a CNN political commentator and president of Feed the Children, has been developing plans for a minority-owned and -operated network for more than a decade. The financial crisis of 2008 was one major hurdle that required postponing the plans.

Long Island Radio: Bill Wiseman Joins Oldies 98.1 FM

JVC Media has  announced the addition of Long Island Radio personality The Wiseman, Bill Wise to JVC and W251BY Oldies 98.1 and WPTY 105.3 HD3.

The Wiseman will take over the Oldies 98.1 morning shift. 

Bill Wise

Bill Wise, aka “The Wiseman’ from “ Dumpwater”, Florida (Daytona Beach). Started his radio career at age 16. Came to Long Island in 2000, where he was program director and on air personality on B-103. “The Wiseman” was born. From middays, the Wiseman became the morning show, the show woke up Long Island for 10 years.

JVC NY General Manager Bruce Shepard said, “The Wiseman is a great addition to our staff”. “He will not only be on the airwaves of Oldies 98.1 he will also work with the team to develop new and exciting live events and concerts for Oldies 98.1, I am thrilled to have him on board”.

JVC Media’s Oldies Program Director Charlie Lombardo added, “I am excited to welcome The Wiseman back to morning radio on Long Island, having someone like the Wiseman with his talent and skill set is a complete win for us. This is live, local and hometown radio the way it is supposed to be. This is a huge win for JVC and Oldies 98.1 we are so lucky to have him”.

“I am thrilled to be part of such a dynamic, live and local radio organization like JVC Broadcasting. I’m so pumped to get back to doing what I love, on the Island that I love. Radio is about to get fun again! I am looking forward to helping JVC continue to grow and prosper” said The Wiseman.

Fresno Radio: Angel Jarquin To Program iHM's KBOS

Angel Jarquin

iHeartMedia has announced that Angel “Visa” Jarquin has been named Program Director for Rythmic-CHR KBOS B95, Fresno’s Home For Hip Hop And Hits.

As Program Director, Visa will be responsible for overseeing the programming content and station branding for B95. He will report to Tony Matteo, Senior Vice President of Programming for iHeartMedia Central California and Nevada.

“Angel’s incredible track record of success and his experience in the format make him an ideal fit to spearhead this market-leading brand in Fresno,” said Tony Matteo. “We’re excited to bring his energy to the B95 team.”

Before joining iHeartMedia Fresno in October 2019, Visa served as assistant program director and afternoon host for iHeartMedia Monterey’s 102.5 KDON. He began his career with iHeartMedia as an intern in San Francisco.

“I’ve always had the mentality that if you work hard and put your mind to something you can achieve anything,” said Visa. “I am beyond excited to be the new Program Director for the legendary KBOS. KBOS has a successful winning track record year after year and I can’t wait to take things to the next level. I want to thank iHeartMedia for this amazing opportunity – it is go time.”