Comscore Revenue Tumbles but Profitability Improves

Audience measurement firm Comscore has reported results for the quarter ended March 31st, including a 12.5% decline in revenue to $89.5m. However, the firm also turned a $2.5m adjusted EBITDA loss into a $6.4m profit.

GAAP net loss was $13.2m, down more than half from $27.5m a year earlier, driven by a sharp fall in total expenses from $116.0m to $90.7m - this the company put down to 'a significant reduction in compensation expense due to lower headcount as well as lower facility costs, professional fees and other general operating expenses'.

The firm said the revenue drop was in part due to a Covid-19-related tailing off of income towards the end of the quarter. Within the overall decline, some divisions fared better than others: Movies Reporting and Analytics, part of the old Rentrak business which has continued to perform well throughout the parent firm's recent struggles, actually saw a small reported rise, from $10.3m to $10.5m - although obviously the firm expects revenue for the remainder of the year to be impacted by theatre closures. Ratings and Planning revenue fell 10.0% to $63.5m, largely driven by lower revenue from syndicated digital products and national TV but alleviated somewhat by continued growth in local TV revenue. Analytics and Optimization saw the sharpest percentage fall, down 28% to $15.5m, with lower sales and deliveries across all products.

Comscore reported a number of key wins within the quarter, including a major TV station and network group (TV and VOD), two large agency holding companies and a global movie studio; and signed a partnership deal with LiveRamp, to develop new advertising services. CEO Bill Livek (pictured) says of the figures: 'We entered the year with great momentum, initiating and renewing business partnerships across the media landscape and positioning Comscore for success in 2020 and beyond. While revenue was lower than anticipated, partly due to effects from the pandemic in the final weeks of the quarter, our first quarter results reflect progress in product development and operational improvements. We launched new products and continued to effectively manage expenses, driving strong adjusted EBITDA growth'. He adds: 'While the economic climate has drastically changed in the past few months, we remain confident in our long-term opportunities and strategy... we have and will take additional short-term actions to contain expenses and improve our operating cash flow, including temporary reductions in compensation, limited furloughs, and other administrative expense reductions'.

In common with many others, the company is withdrawing its 2020 outlook due to the uncertainty surrounding the effects of the pandemic.

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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