Around the Net

Arbitron's Q2 Profit Swells

  • Reuters, Wednesday, July 22, 2009 12:02 AM
Arbitron's second-quarter profit surged nearly six-fold, but the research firm cut its revenue forecast for the year due to the recession. Second-quarter revenue rose about 10% to $86.8 million.

The company expects full-year revenue to increase 6%, compared with its earlier forecast of a 6% to 10% growth. The shifting revenue outlook is exacerbated by Univision Radio's decision not to renew its contract for Portable People Meter ratings in certain markets, says Arbitron CFO Sean Creamer. In the first half of 2009, Arbitron's software sales and qualitative offerings fell about 5%, and it does not expect that to turn around any time soon, Creamer added.

Arbitron is enjoying double-digit revenue growth when most companies are seeing no growth, even though it serves the struggling radio industry, notes Gilford Securities analyst James Boyle. The reason is that when Arbitron moves to the electronic PPM technology, "the fee is 65% higher than the former diary fee," Boyle says. The company plans to introduce PPM tech in 13 additional markets during the rest of the year.

advertisement

advertisement

Read the whole story at Reuters »

Next story loading loading..