Arbitron Third Quarter Financial Results

Arbitron has announced its results for the quarter ended September 30, 2002 showing revenues up by 6% and net income up by 20%.

For the third quarter 2002, Arbitron generated revenues of $69.6 million, an increase of 6.0% over revenue of $65.6 million during the third quarter of 2001. Earnings before interest and taxes (EBIT) for the quarter were $29.0 million, compared with EBIT of $26.2 million during the comparable period last year. Net income for the quarter was $15.4 million, compared with $12.9 million for the third quarter of 2001, an increase of 20.0%.

The transfer of Federal income tax net operating losses (NOL) from Ceridian Corporation to Arbitron, which had been estimated at the time of the reverse spin-off, was finalised during the quarter. This resulted in a higher NOL tax benefit to Arbitron of $10.7 million. The adjustment reduced cash taxes paid during the quarter but did not impact net income.

For the nine months ended September 30, 2002, revenue was $192.0 million, an increase of 9.0% over the $176.1 million reported for the same period last year. EBIT was $71.6 million, compared to $66.3 million in 2001. Net income for the nine months was $36.3 million or $1.21 per share (diluted), compared with $33.9 million or $1.15 per share (diluted) last year.

Commenting on the results for the third quarter, Stephen Morris, president and chief executive officer of Arbitron said, 'Our revenue, EBIT and net earnings in the third quarter have all benefited from the solid performance of our core ratings business. We are seeing signs that the advertising economy is slowly improving, which will help us maintain a stable and growing core business while we pursue opportunities in new markets such as outdoor and Latin America. For all these reasons, we remain on track to meet our previously provided guidance for 2002.'

'With each quarter, we see continued positive signs from the marketplace," added Mr. Morris. 'In the last three months, the Outdoor Advertising Association of America signed a contract pledging $300,000 in support of our ongoing development of a ratings service for their industry. During the quarter, we also opened Monterrey, our third radio ratings market in Mexico, joining Mexico City and Guadalajara. In the United States, we launched three new radio ratings markets with the Fall 2002 survey. All of these events confirm that our core business is solid and has continuing potential for further growth. Also during the third quarter, BBM Canada selected the Arbitron Portable People Meter to measure television audiences in Montreal and Quebec beginning in 2003. This is a significant step forward in our efforts to commercialise our new audience measurement technology around the world. We also entered into conversations with Nielsen Media Research to expand that company's ongoing participation in the current Portable People Meter market trial in Philadelphia. While we have delayed the commercialisation timetable in response to the requests of both our customers and Nielsen, we are confident that the important issues have been identified and will be successfully addressed.'

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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