Arbitron Q2 Results Below Expectations
July 22, 2008 at 5:56 AM (PT)
ARBITRON INC. posted Q2 earnings below market expectations, hurt by higher expenses, but reiterated its guidance for the fiscal year. The company's earnings fell by 85% to $600,000 or 2 cents a share, from $3.8 million or 13 cents a share, a year-ago, reports REUTERS. Revenue for the quarter increased by 3.7% to $78.7 million.
The NEW YORK-based company's expenses increased by 9% to $82.4 million as part of its plan to commercialize its PPM ratings service.
ARBITRON continues to expect revenue to increase between 8% and 10% for the year and earnings per share of between $1.30 and $1.44 for full-year 2008.
"In JUNE, we made the decision to restart the commercialization of our PORTABLE PEOPLE METER ratings services, said Pres./CEO STEVE MORRIS. "Now that preliminary PPM ratings are being released in a number of new markets, we are redoubling our ongoing effort to help the radio industry in its transition from diary to electronic ratings. The industry and we have learned much in the transition that has already taken place in HOUSTON and PHILADELPHIA. We intend to help radio apply these lessons as we bring PPM to radio's top markets in the balance of 2008."