Arbitron Trial Costs Hit Q3 Results

Arbitron's net income for the third quarter of this year was 13.7% less than the same time last year. The company's revenue grew by 4.5%, but its trial of Portable People Meters (PPMs) led to an increase in expenses of almost 12%. The company has now lowered its previous year-end estimates.

For the third quarter, the company reported revenue of $85.6 million - an increase of 4.5% from the third quarter of 2004. For the first nine months of the year, revenue increased by 4.9% compared with the same period last year.

Costs and expenses for the third quarter rose to $47.1m - 11.8% more than the figure for the same quarter last year. The company's PPM demonstration in Houston and the rollout of Project Apollo (which collects multimedia and purchase information from consumers via PPMs) both contributed to this increase.

As a result, net income for the third quarter decreased by 13.7% from $24.2 million in 2004 to $20.9 million in 2005. Net income per share for the third quarter 2005 also decreased to $0.66 (diluted), compared with $0.77 (diluted) during the comparable period last year. However, net income for the first nine months of the year was $56.1 million - an increase from $50.9 million during the same period last year.

Earnings before interest and income tax expense (EBIT) for the quarter were $33.1 million, a decrease of 1.8% compared to last year, while EBIT for first nine months rose by 3.56%.

Arbitron now expects year-end 2005 revenue to be between $309 million and $311 million - 4.2 to 4.9% more than last year. It previously estimated an increase of between 5 and 7%. The company predicts earnings per share (diluted) of between $2.06 and $2.10 - lower than its previous estimate of between $1.99 and $2.03.

Stephen Morris, Arbitron's President and CEO, points out that the company achieved its third quarter goals for revenue and profitability. He states that the PPM and Project Apollo trials are 'key to the company's growth initiatives', and that both achieved important milestones in the last quarter. 'In Houston, we delivered the first radio and television audience estimates,' he explains. 'We also showed that we could recruit and maintain a sample that is representative of the diverse Houston marketplace, particularly in terms of African-Americans and Spanish-speaking Hispanics'.

The company is online at www.arbitron.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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