comScore Revenue Growth Slows

comScore has announced financial results for the second quarter of 2012, including a much-slowed growth in revenue - up just 4% to $60.3m. Adjusted EBITDA remained relatively robust at $9.6m (16% of revenue), compared to $11.1m in Q2 2011.

The revenue rise compares with Q1 growth of 18% and full year 2011 growth of 33%. comScore said the results were weakened by declines in its TV copy testing business and 'to a lesser degree by foreign currency fluctuations'. Omitting the former, which comScore added to its scope in 2010 with the acquisition of ad pre-screening survey business ARSgroup, the pro forma revenue increase would have been 9%. The copy testing decline was blamed on increased competition from suppliers offering global off-line research fielding capabilities, encompassing countries with low Internet penetration, and comScore says copy testing has 'ceased to be a strategic fit' for its business.

Profit and earnings figures also reflected copy-testing problems - namely a recorded charge of $3.3million for impairment of related TV copy testing intangible assets during the quarter. GAAP loss before income taxes was ($6.4m) and GAAP net loss was ($6.6m), or a loss of ($0.20) per basic and diluted share.

President and CEO Dr. Magid Abraham expressed disappointment, but added: 'However, we believe these factors mask the strength in new contract signings we are experiencing in our comprehensive portfolio of digital business analytics solutions.' He particularly singled out growth in digital campaign measurement solutions, with a strong share captured in the rapidly growing market for digital campaign ratings and performance measurement. The firm's validated Campaign Essentials (vCE) service - which recently achieved MRC accreditation - and its Digital Analytix (DAx) service both show great promise, as do the recently launched Mobile Metrix 2.0 and the core Audience Analytics business led by Media Metrix 360, according to Abraham.

The company expects Q3 revenues of $60.5 - $63.5m and adjusted EBITDA of $8-10million. Anticipated full year revenue of $248.1 - $255.1m is well below the previous forecast of $277 - $281.7m.

Web site: www.comscore.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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