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Arbitron Third Quarter Results
Arbitron has announced results for the third quarter ended September 30, 2006. Revenue of $90.7 million is up 6% on Q3 2005, but planned spending on the PPM and Project Apollo initiatives have contributed to increased costs and expenses, with earnings before tax still trailing 2005 figures.
Costs and expenses were up to $56.8m for the third quarter, from $52.7m in Q3 2005. Earnings before interest and income tax expense (EBIT) for the quarter were $32.1m, down 3.0% on the comparable period last year, and net income down 3.4% to $20.2m. Net income per share however was up 2 cents to $0.68 (diluted) due to share repurchase activities.
For the nine months ended September 30, revenue was $250.0m an increase of 6.5% on the year, while EBIT was $73.1m, compared to $84.4m in the same period of 2005. Net income was $45.7m or $1.51 per share (diluted), down from $56.1m or $1.77 per share (diluted) in the first nine months of 2005.
President and CEO Stephen Morris pointed to continuing progress with Project Apollo, recently endorsed by the World Federation of Advertisers, and the Portable People Meter(SM) System for which more major market broadcasters have recently signed ratings agreements. Among other achievements in the quarter, the firm's Scarborough Research joint venture was fully accredited by the Media Rating Council, 'giving that service a significant competitive advantage in its marketplace.'
Year-end 2006 revenue guidance is unchanged, with revenue expected to increase 6-8% on the year and fourth quarter diluted Earnings Per Share (EPS) projected between $0.12 and $0.17 versus $0.36 in the fourth quarter 2005. The latter takes into account several factors including the firm's repayment of its $50 million note, which it says had an above market interest rate and a number of terms that potentially limited the company's financial flexibility; the impact of share-based compensation expense; and planned incremental spending on the PPM rollout in Philadelphia, New York and Los Angeles, plus some planned IT spending carried over from the 3rd quarter. Diluted EPS for the full year 2006 is now expected to be between $1.63 and $1.68.
More detail is on Arbitron's web site at www.arbitron.com .
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