Nielsen Holdings Earnings Call Insights: The Walmart Phenomena, Expanded Coverage Data

On Monday, Nielsen Holdings NV (NYSE:NLSN) reported its third quarter earnings and discussed the following topics in its earnings conference call. Take a look.

The Walmart Phenomena

Brian Karimzad – Goldman Sachs: If we can just talk a little bit more about the softness of the Insights from that zero to minus 9, what’s your sense of what’s different about that half of the top 10 that increased versus the other half that I presume did some pretty through your cuts, did you also get a sense that perhaps some folks who pay the upcharge for the coverage expansion of Walmart maybe their budget wasn’t ready and they pulled back a bit on the insights to accommodate that.

David Calhoun – CEO: It’s a good question. The first observation I would make is, it was a little bit more of a developing world centric maneuver. If I would characterize, the clients that are spending more versus those that aren’t. It usually reflects their business situation, so those who are sort of have momentum feeling market share gains are of course doing more and more and those who are feeling the opposite are doing less and less, and so it just so happens that balance worked against us. The Walmart phenomena honestly as I go through this with our teams, you can’t point to any specific situation where that’s the case. On the other hand, I guess I’d be sort of crazy to suggest that that might not have been the case. So, I just don’t, it’s not an easy one to corral and put your arms around, so there is a possibility that the new Walmart contracts did take something out of the budgets, but it wasn’t a sort of easy one-for-one thing that any of us could notice. So, I’m not trying to deflect it, that’s the truth.

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Expanded Coverage Data

Andrew Steinerman – JPMorgan: When you speak to your clients about the new or (elsewise) combined database, do you feel like, they got an over value that they anticipated and when you look at the Buy Information segment, do you feel like the fourth quarter will have the same benefit as the third quarter or the fourth quarter and Buy Information might see further acceleration because of the AOC Database?

Brian West – CFO: So I will just cut it first. We have had nothing but rave reviews of the expanded coverage data here in the U.S. and I have personally felt them on all fronts. So it’s complete for the first time, it gives them some great analytic opportunities that they never had before and so I could not feel better about how that’s gone and whether they believe they are deriving real value from it or not, I see that both at the retail level and at the brand and manufacturing level.

David Calhoun – CEO: As far as the fourth quarter so, we had very nice info growth in the quarter. Part of that obviously was Walmart and part of which is higher demand. The part that is, what we had expect, it to be consistent for the next three quarters as we have always discussed.

A Closer Look: Nielsen Holdings Earnings Cheat Sheet>>