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Arbitron Reports Q2 Improvement
Ratings giant Arbitron has reported a 'better-than-expected' second quarter, with a 1.8% increase in revenue to $88.3m compared with $86.8m in the prior year period, and an 8.7% rise in profits to $3.8m, from $3.5m.
 During the period, costs and expenses increased by 2.1% to $87.7m, which the firm mainly attributes to the continued commercialization of its Portable People Meter (PPM) measurement system. Arbitron also incurred costs of $1.5m for 'executive staff realignment'.
Half year profits increased 10.8% to $17.5m, but revenue dropped 0.6% to $184.2m as a result of the firm losing contracts with radio broadcasters Cumulus Media and Clear Channel Radio to Nielsen last year.
'In the second quarter, the radio advertising marketplace continued to improve,' said President and CEO William Kerr. 'As the ad economy brightens, we continue to work with customers to help the radio industry take better advantage of the rebound in advertising dollars.'
During the second quarter the firm settled its dispute with the PPM Coalition over claims of undercounting minority listeners. As part of the settlement, the two organizations have created an improvement plan which includes the addition of address-based sampling with targeted in-person recruiting to increase PPM panelist participation in key market segments.
The company also launched its PPM 360 electronic measurement device, which Kerr regards as a step toward Arbitron's goal of delivering PPM technology on smart phones and other Internet-enabled devices.
At the end of the quarter, the company implemented a new consumer-focused management structure which gave five members of its executive leadership team additional responsibilities.
'Our other priorities for the balance of 2010 remain straightforward,' Kerr stated. 'We will work toward the completion of the commercialization of the PPM ratings service. We will continue our programs that are designed to improve key sample quality metrics for our PPM and diary services and further develop our cross-platform measurement capabilities.'
Web site: www.arbitron.com .
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