Rentrak reports operating loss on media division investments
US— Rentrak Corporation has announced its full-year financial results, showing consolidated revenue for fiscal 2012 fell 6% to $91.1m (£59m) compared with $97.1m (£62.9m) the previous year.
The multi-screen media measurement firm, which serves the advertising, television and entertainment industries, reported an operating loss of $5.9m as a result of investments made to further expand the company’s high-growth Advanced Media and Information (AMI) business.
Consolidated revenue for the fourth quarter of fiscal 2012 was only slightly down, to $24.6m (£15.9m) compared with $24.7m (£16m) last year, reflecting a 26% improvement in the company’s AMI business, which was offset by a 16% decline in the company’s Home Entertainment business.
Revenue in the company’s AMI division rose to $11.6m (£7.5m) for the 2012 fiscal fourth quarter, up from $9.2m (£5.6m) a year ago, and represents 47% of Rentrak’s consolidated revenue, up from 37% last year.
“Our TV Essentials business grew 90% this quarter, capping improvements in each quarter during the fiscal year as we added several new important national network, local TV station, advertising agency and advertiser clients. The future of our television measurement business is very bright, highlighted by 125% growth in our revenue run rate to date, versus last year’s fourth quarter,” said Bill Livek, Rentrak’s chief executive officer.
“We believe that our ability to provide industry participants with a stable database currency for measuring the effectiveness of their operations positions Rentrak as a key service for any entertainment, television or advertising company seeking a better way to manage and profitably grow its business in today’s highly fragmented media world.”
Rentrak said that it recently achieved several milestones including:
- Signing a new agreement with MasterCard to offer planning, buying and selling products for the packaged goods, retail, travel, entertainment, restaurant and telecommunications industries.
- Increasing its local TV measurement service to 165 local TV station clients, in 37 station groups in 82 local TV markets – up from about 75 local TV station clients in 25 station groups a year ago.
- Extending its national TV network measurement client base through the addition of the CW Television Network, Rentrak’s first broadcast network client
- Developing agency relationships at Collective Media and UM, a division of IPG’s Mediabrands, as well as establishing a new relationship with Empower MediaMarketing.
- Entering into a multi-platform contract with SnagFilms for OnDemand Essentials and Digital Download Essentials.
- Expanding its TV measurement business to China through the formation of Sinotrak, with Chinese partner Sinomonitor. Rentrak (through Sinotrak) is the first company licensed by the Chinese government to measure all screens through digital devices in China.