Arbitron First Quarter Revenues, Income Rise
April 26, 2011 at 4:24 AM (PT)
ARBITRON first quarter 2011 revenue rose 5.2% to $100.9 million, with the company crediting the commercialization of the Portable People Meter in 15 markets in the second half of 2010 and the transition to PPM pricing. Net income increased 18.2% to $16.2 million (59 cents per diluted share).
Pres./CEO WILLIAM T. KERR said, "In the first quarter, we earned MEDIA RATING COUNCIL accreditation of the data produced by our Portable People Meter service in 11 additional markets. Thanks to the impact of our continuous improvement programs on the quality of our samples and services, a total of 14 PPM markets now display the MRC 'double checkmark' symbol.
"We also made progress in our cross-platform initiatives. CBS and TURNER SPORTS used our PPM out-of-home ratings service for the 2011 NCAA Men's Division I Basketball Championship to demonstrate the significant lift that away-from-home television viewing can deliver. And, as previously announced, the COALITION FOR INNOVATIVE MEDIA MEASUREMENT selected ARBITRON for a proof-of-concept pilot to measure television, Internet and mobile users. Both of these initiatives provide tangible evidence of the traction and credibility we believe we are gaining in this rapidly evolving marketplace.
"For the balance of 2011, we still expect revenue to grow faster than costs. Because we have fully commercialized the PPM service in all 48 markets, we anticipate margin expansion as our costs stabilize and as we continue to benefit from the phase in of pricing for our PPM service."
The company also reiterated its previous guidance of revenue increasing between 6% and 8% for the full year 2011 over last year's $395.4 million, with earnings per diluted share expected to increase 16% to 25% to between $1.90 and $2.05.