Arbitron Posts 17% Decline in Q3 Profit

US ratings giant Arbitron has posted a 17% drop in third quarter profit to $11.3m from $13.7m in the prior year period. The firm says this reflects both radio broadcasters' cautious approach to the economy and its own higher costs and expenses.

For the third quarter, revenue rose 1.4% to $99.7m from $98.12m last year, against analyst predictions of $105.4m.

The firm said that during the first three quarters of the year, some companies reduced their level of service, or did not subscribe, but this was partially offset by an increase in revenue from its Portable People Meter (PPM) ratings service.

Costs and expenses in the third quarter rose 7% from $73.5m in 2009 to $78.6m in 2010, due primarily to the PPM's continued commercialization and investments in programs to recruit persons in the 18-34 age group for its PPM and diary markets.

For the nine months ended September 30, 2010, revenue was $283.7m, an increase of 0.1% versus revenue of $283.4m for the same period in 2009.

'As we approach the end of the year, we will continue our focus on completing the commercialization of our PPM ratings service, maintaining our programs designed to improve key sample quality metrics for our PPM and diary services, and developing further our cross-platform measurement capabilities,' states President and CEO, William Kerr.

The firm is anticipating 2010 revenue to be near the lower end of its previous expectations, and is narrowing its full-year earnings per share guidance to $1.60 - $1.65, from its earlier guidance of $1.50 - $1.75 per share.

Web site: www.arbitron.com .