US ratings giant Arbitron has reported full-year 2011 revenue up 6.8% to $422.3m, and operating income up 29.6% to $85.1m. For the quarter, ended December 31, revenue was up 7.6% to $120.1m and operating income up 8.8% to $20.7m.
Fourth quarter net income fell 9.6% to $14.1m, but for the full year this figure also rose substantially, up 19.8% to $53.3m.
Q4 revenue was helped by the continued phase-in of contracted price increases for the company's Portable People Meter (PPM) radio ratings services, as well as by increases in the sales of discretionary services.
Costs and expenses rose 2.3% in 2011 to $337.2m, with those for the fourth quarter up 7.3%, from $92.7m in Q4 2010 to $99.5m. The firm said the latter was primarily due to the increased cost of revenue associated with providing PPM and diary services, operating costs incurred by Arbitron Mobile
, and year-over-year increases in performance and share-based compensation.
President and CEO Bill Kerr
comments: ‘In 2011, we made significant progress toward achieving our objectives: growth in our core revenue, improved margins in the wake of the full commercialization of our PPM radio ratings service, and entry into new markets in the US and overseas. For 2012 and beyond, we see our basic strategies as unchanged, and we will pursue these with the goal of building long-term value for our customers, our employees and our shareholders.’
In 2012, Arbitron expects full year revenue to increase between 5% and 7% over its 2011 revenue. Additionally, the firm’s cross platform initiative and Arbitron Mobile are expected to account for $4m to $7m of the 2012 revenue, compared with $1.5m in 2011.
Web site: www.arbitron.com