Arbitron Q1 Net Earnings Gains 9.6%, Revs Up 5.5%
Arbitron reported first quarter revenue grew 5.5% to $106.4 million from $100.9 million in 2011. Revenue benefited primarily from annual rate increases, including the continued phase-in of contracted price increases for the company's Portable People Meter service. Net earnings increased 9.6% to $17.8 million (64 cents per diluted share as compared with $16.2 million (59 cents) in the year-ago period.
Costs and expenses for the first quarter 2012 increased by 4.7 percent to $75.2 million. Approximately $2.8 million of the increase was due to costs associated with Arbitron Mobile, which was acquired in July 2011. Operating income increased 7.4% to $31.2 million from $29.1 million in the same period last year. EBITDA was $36.6 million, an increase of 8.1% from $33.9 million.
President/CEO William T. Kerr said, "Our results and our activities in the first quarter are well aligned with our long standing priorities for enhancing our core services and for generating revenue growth. We unveiled our marketing mix modeling service at the recent Advertising Research Foundation convention. We expect to have the complete service up, running and ready to improve radio's visibility among the top agency media planners by the middle of the summer."
He continued, "Digital radio remains a key priority as we continue our work to follow radio onto its new digital platforms in order to quantify this growing audience segment thereby enabling customers to monetize it. Our cross platform initiatives continue to demonstrate the value that our unique personal, passive and portable measurement technologies can bring to this emerging marketplace."
Arbitron expects 2012 revenue to increase between 5-7% over its 2011 revenue of $422.3 million. Arbitron's cross platform initiative and Arbitron Mobile are expected to account for $4 million to $7 million of the company's 2012 revenue compared to $1.5 million in 2011. (04-19-12)
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