comScore Reports Revenue Growth and Underlying Profit

In the US, comScore has reported revenue up 5% to $105.9m in the first quarter, with adjusted EBITDA of $3.6m, compared to a loss of $1.9m a year earlier. However, one-off costs including its lengthy audit led to a GAAP net loss of $51.5m, following a loss of $40.8m in Q1 2017.

Two years ago, comScore revealed that an audit had been set up to examine accounting irregularities. The company eventually reported that its previous three years' financial statements 'should no longer be relied upon', but in March it finally filedaudited financial statements for 2017, 2016 and 2015, along with unaudited restated results for 2014 and 2013, while confirming that it has applied for relisting on NASDAQ. During the previous period of uncertainty, three CEOs left; and in December, the firm reported plans to cut 175 jobs, 'following management's determination to reduce staffing levels and exit certain geographic regions, in order to decrease global costs'.

Total Q1 costs associated with the audit investigation and restructuring were $33.1m. Newly appointed CEO Bryan Wiener (pictured) says that his immediate priority is to accelerate company turnaround, with a leadership team committed to not only reducing significant costs for 2018, but also 'setting the stage' for substantial margin expansion in the years to come.

GAAP net loss for the quarter includes $1.9m in stock-based compensation, $31.9m in investigation and audit-related activities, $1.3m in restructuring costs and $2.6m in other expenses. Excluding stock-based compensation and non-core expenses, net loss for the first quarter of 2018 was $13.8m.

During Q1, revenue from the firm's digital audience product offering was $57.8m, 'consistent' with the same period of 2017. TV and Cross-Platform revenue increased 15% to $25.3m from the prior year period; while advertising product revenue increased 6% to $12.2m; and movies revenue increased 13% to $10.6m. Wiener confirmed that comScore's plans include accelerating product innovation, increasing operational excellence and simplifying the firm's cost structure.

Web site: www.comscore.com .