Rentrak Q3 Revenue Up 27%, Firm Considers PPT Sale

Multi-screen measurement specialist Rentrak has reported a 27% revenue rise to $31.6m for fiscal 2014 Q3, up from $24.9m in the prior year period. Separately, the firm is considering the sale of its PPT home video rental analysis arm, which is anticipating declines of up to 25% in fiscal 2015.

Third quarter figures were driven by 35% growth in the AMI business to $18.5m, representing 59% of Rentrak's consolidated revenue. The AMI (Advanced Media and Information) division comprises three units: the TV Essentials business, where during the quarter, revenue rose 84% to $8.4m; the Box Office Essentials arm, which saw a revenue rise of 11% to $6.7m; and OnDemand Everywhere, which measures the consumption of video on demand (VOD) content, where revenue was up 10% to $3.4m. In addition during the period, the company's Home Entertainment business revenue rose 17% to $13.1m from $11.2m a year ago.

In an investor call, CEO Bill Livek (pictured) confirmed that Rentrak is currently considering selling its PPT (pay-per-transaction) home video rental analysis business, in order to enable the company to focus on its 'higher growth' AMI business. For this year, PPT revenues are expected to be $43m to $45m, whereas for fiscal 2015, Rentrak is expecting a decline of up to 25% due to the total loss of revenue from the Blockbuster account, as well as the long-term decline in the business.

Rentrak's overall group operating expenses for fiscal 2014 third quarter totalled $15.8m, compared with $12.9m in the prior year quarter, partly reflecting increased costs relating to the expansion of the AMI division, as well as costs associated with the acquisition of iTVX and increased headcount in the IT department. Operating loss for the period was reduced to $695k from $1.8m in last year's third quarter; while net loss was reduced to $343k, from a net loss of $1.8m for the same period last year. Adjusted EBITDA grew to $2.7m from $1.0m for the same period last year.

Livek commented: 'Rentrak had a fantastic quarter, as the team worked together to sign a significant number of new clients and expand several long-standing client relationships. We are committed to delivering strong revenue growth and expanding profits for Rentrak's shareholders.'

Web site: www.rentrak.com .