Measurement Wing Keeps Rentrak on Track

Multi-screen media measurement firm Rentrak has announced financial results for its fiscal fourth quarter and full year ended March 31st. As with the previous quarter, the figures show rapid growth in its AMI (Advanced Media and Information) division against a decline in its Home Entertainment division.

Fourth Quarter revenues rose to $24.7m, with continued growth in the company's AMI division the principal factor. Excluding acquisition-related revenues, the division grew revenue by c.16% in the quarter - it now represents 37% of the company's total, versus 28% a year ago. Gross margin dropped from 73% to 62%, affected by higher fixed costs associated with obtaining data for the company's TV business.

Rentrak's other business, Home Entertainment, saw a decline of c.14% to $15.7m, due mostly to weaker rentals throughout the industry. Group operating expenses rose from $10.6m (42%) to $11.7m (47%), mainly due to acquisition-related expenses; and operating loss grew from $0.2m to $0.8m - adjusting for one-off items, this equates to a fall in operating income from $2.5m in fiscal Q4 2010 to $0.7m a year later. Net loss was $789,000, or $0.07 per share, compared with net income of $197,000, or $0.02 per diluted share in Q4 2010 (adjusted figures - net loss of $0.1m vs net income of $2.2m a year earlier. Adjusted EBITDA excluding the same costs would have been $1.7m for Q4 2011 vs $3.2m a year earlier.

The firm says important milestones achieved in the period included the addition of time-shifted DVR ratings to its StationView Essentials service, increasing client bases for TV Essentials and OnDemand Essentials; and partnerships and agreements covering an online advertising capability for campaign enhancement. The licensing of TV Essentials to Havas company MPG; and the integration of Epsilon's anonymous demographic and lifestyle information into Station View Essentials and of Rentrak's TV database measurement service into the systems of three industry-leading software providers.

Consolidated group revenues for the full year fiscal 2011 rose 6.6% to $97.1m - those for the AMI division leapt 72% to $34.1m while the Home Entertainment division saw a decline from $71.3m to were $63.0m year-on-year. The group's operating loss grew from $0.9m to $2.6m, but excluding one-offs it says operating income would have been up from $4.4m to $6.2m. Adjusted net income for 2011 would have been $4.7m, or $0.43 per diluted share, Rentrak says, versus $4.4m / $0.40 in 2010, while adjusted EBITDA would have risen from $6.7m to $9.7m and the company's cash position has strengthened markedly.

CEO Bill Livek comments: 'Rentrak successfully strengthened its market position in fiscal 2011 by providing relevant and innovative database measurement services to an expanding roster of clients throughout the advertising, television and entertainment industries. Although our fourth quarter results did not meet my expectations, we are making substantial progress against our plan.'

Based in Portland, OR, the firm is online at www.rentrak.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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