High costs continue to hit Arbitron profits
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US-- Profits were down again for Arbitron in the first quarter as the radio ratings firm continues to face high costs from the troubled rollout of its portable people meter (PPM) system, and from a restructuring drive that it hopes will save it $10m a year.
The company recorded an $8.2m charge for restructuring during the three-month period, and achieved net income of $12.3m, down from $16.3m in the same period last year. Costs were up 19% in the quarter to $75.4m.
Changes brought in by the firm's new CEO Michael Skarzynski have included laying off 110 people and restructuring the firm's executive team with the scrapping of some senior roles and the hiring of three new executive vice presidents.
Total revenue in the period was $98.5m, up 4.7% from the first quarter of last year. Skarzysnski said the rise was due mainly to the twelve new PPM markets that were commercialised in the final quarter of 2008.
Commenting on rival Nielsen's entry into the smaller diary markets late last year, which saw Arbitron lose business from Clear Channel and Cumulus, Skarzynski said: “We take seriously Nielsen's entry to Arbitron's core business. We intend to remain in the diary market and make continuous improvements to our diary service in order to maintain our leadership position. We plan to measure radio audiences in all of the competitive markets that are part of our current line-up.”
Author: Robert Bain
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