Comscore Cuts Net Loss as Revenue Rises

Audience measurement firm Comscore has reduced its net loss to $27.2m on a GAAP basis, compared with $71.9m a year earlier, while reporting a 6.2% increase in fourth quarter revenue to $109.3m. For the full year 2018, revenue was up 3.9% to $419.5m.

At the end of 2017, the firm reported plans to cut 175 jobs, in a bid to decrease global costs, after filing accounts for 2017 showing net loss had more than doubled to $281m. In an earnings call yesterday, CEO Bryan Wiener (pictured) described Q4 as a 'marquee quarter' for the firm, adding that while 'not declaring victory', Comscore believes the latest figures are proof it is on the right track towards building a business 'that can deliver improved revenue growth with expanding margins over time'.

For Q4 2018, Adjusted EBITDA was $6.3m, compared to a loss of $8.1m a year earlier. Ratings and Planning revenue increased to $74.8m from $71.6m - primarily in TV products due to increases in existing customer contract values as well as approximately $2.8m related to the delivery of cross-platform products in Europe. Analytics and Optimization revenue increased to $23.9m from $20.8m in Q4 2017; while Movies Reporting and Analytics revenue was flat at $10.6 in the fourth quarter of 2018 ($10.5m in Q4 2017).

For the full year, GAAP net loss fell to $159.3m from $281.4m in 2017, primarily relating to lower litigation settlement costs, lower investigation and audit costs, and lower operating expenses, offset by higher interest expense on the company's senior secured convertible notes. The net loss for the full year 2018 included a $1.9m positive impact as a result of the adoption of neutral revenue recognition standard ASC 606. During the year, adjusted EBITDA was +$16.4m, compared to a loss of $18.7m in 2017.

In yesterday's earnings call, Wiener outlined three areas where the company plans to invest this year, in order to transform the business. These include technology to streamline and modernize the company's systems, while lowering operational costs from 2020; building a 'customer-centric product road map' around addressable and outcome-based transactions; and a 'reimagined' go-to-market approach for engaging brands and agencies. Wiener added: 'We continue to benefit from shifts in the media landscape that demand a better solution and currency for measuring media across platforms. 2018 was a meaningful step forward in the transformation of Comscore, and we are now leveraging a stronger foundation to execute into 2019 and beyond'.

Comscore's share have jumped from a low of $13.19 on Christmas Eve to $23.49 at 12.30 EST today, 1st March, a rise of 78%.

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.