Arbitron Profits Jump as PPM Intro Costs Tail Off

Arbitron has today announced second quarter results ahead of many analysts' expectations, with revenue up 8.4% year-on-year to $95.7m. With costs up just 1.1%, profits jumped: EBITDA was up 52.5% to $19.7m.

EBITDA margin for the quarter - which ended June 30th - was 20.6%, up from 14.6% a year previously.

The radio ratings giant said the revenue hike follows commercialization of the flagship PPM device in the final 15 US markets in the second half of 2010, the continued phase-in of contracted PPM price increases and the Univision PPM ratings contract signed last November.

Costs and expenses rose from $87.7m to $88.7m, net income doubled to $7.6m and diluted EPS (earnings per share) was up from $0.14 to $0.27.

For the six months as a whole, revenue was up 6.7% to $196.6m, while EBITDA rose 27.3% from $42.1m to $53.6m (margin 27.3%).

President and CEO William T. Kerr pointed to multi-year contracts with Starcom MediaVest and ZenithOptimedia; the signing of a leading broadcaster to a cross-platform radio and TV audience study; and better margins with the end of PPM commercialisation costs and the phasing-in of price increases. He also said the company had made 'good progress' in the development of a total audience measurement service, combining both over-the-air and Internet audio listening - in which the market has shown 'significant interest'.

Arbitron is reiterating its guidance for the full year 2011, expecting revenue up 6-8% from 2010's figure of $395.4m and diluted EPSof between $1.90 and $2.05, up 16-25%.

Web site: www.arbitron.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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