Nielsen Expects $500 Mln In Annualized Cost Savings Over Next 3-yrs

(RTTNews) - Nielsen (NLSN) said it expects to deliver $500 Million in annualized cost savings and significant margin expansion over next three years; targets 4% constant currency revenue CAGR and Double-Digit GAAP earnings per share CAGR Through 2020. It reaffirmed 2017 financial outlook and announces 2018 guidance.

During its annual Investor Day event being held today in Florida, Nielsen will provide a detailed view of the company's plan to deliver shareholder value by investing in innovation for growth and efficiency. The company will build on more than 90 years of continuous innovation and proven market leadership with Nielsen's "Path to 2020," which is expected to result in annualized cost savings of $500 million and roughly 400 basis points of adjusted EBITDA margin improvement over the next three years. Additionally, Nielsen targets a double-digit GAAP earnings per share CAGR through 2020.

Nielsen said it will outline plans to create a stronger, higher margin business that will enhance value for its clients and shareholders. The company plans to reinvest a portion of the $500 million of cost savings to fund future growth initiatives and to continue its balanced capital allocation approach.

The company maintained its full year 2017 guidance.

The company has also provided guidance for the full year 2018. It expects total revenue growth on a constant currency basis to be about 3%,GAAP net income per share of $1.40 - $1.46, free cash flow of about $800 million.