Arbitron Q1 Revenue Up, Income Off
April 19, 2007 at 5:54 AM (PT)
ARBITRON first quarter 2007 revenue rose 7.9% to $91.8 million, boosted by equipment sales related to the International Portable People Meter licensing business; excluding the impact of these sales, revenue grew 7.1%. Earnings before interest and income tax expense (EBIT) fell 15% to $24.7 million. Net income fell 14.8% to $15.5 million (52 cents/diluted share).
Pres./CEO STEPHEN MORRIS said, "ARBITRON is focusing its attention and its resources on the rollout of the Portable People Meter radio ratings service, which went live in PHILADELPHIA last month. Our primary goal in 2007 is to execute successfully the initial markets in our PPM rollout, continue our steady progress toward MRC accreditation for all PPM markets, and work with the radio industry to make the transition to electronic measurement as smooth as possible.
"With THE NIELSEN COMPANY, we continue to invest in the development of PROJECT APOLLO with a goal of reaching a decision about implementation in the second half of the year. While initial results show promise, we still have further work to do to demonstrate the value of PROJECT APOLLO for advertisers and the media as well as to complete a workable business plan for ARBITRON and THE NIELSEN COMPANY."
ARBITRON also reiterated its previously issued revenue and earnings per share guidance for full year 2007, expecting revenue to increase between 5.5% and 7.5% compared to last year and earnings per diluted share to be between $1.30 and $1.50 (down from $1.68 in 2006).