NEWS29 July 2010

ComScore posts record quarterly revenue, but costs drive profits down

Financials North America

US— ComScore has reported record quarterly revenue for Q2 2010 and raised its expectations for the rest of the year, but has seen a decline in profits because of costs relating to acquisitions and restructuring.

Revenue for the quarter was up 34% to $42m from $31.4m in the same period last year, but costs relating to last year’s restructuring and $2.2m relating to recent acquisitions meant that profit before income tax was down 30%, and down by 33% after tax.

Before income tax the profit for the second quarter was down to $1.8m from $2.6m last year while the figure after tax was $0.8m compared to $1.2m in 2009. EBITDA for the period was up 28.6% to $9m from $7m.

On a brighter note the firm said that it added 72 new clients – the highest-ever quarterly total – during the period, many of which signed up to subscription-based deals that will have a positive input into future quarterly results.

ComScore president and CEO Magid Abraham (pictured) said: “We are pleased with the excellent revenue and adjusted EBITDA growth we achieved in the second quarter. Both metrics were well above our previously announced guidance and reflected positive growth in virtually every product area and customer segment. As in recent quarters, Media Metrix 360 continued drawing new business and driving increased value from existing customers. Vertical markets with strong revenue growth in the second quarter included online publishers, consumer packaged goods, pharmaceuticals, technology and telecommunications.”

Looking ahead, ComScore has raised its expectations for the third quarter and the rest of the year, and is now predicting revenue of between $44.3 and $45.1m for Q3, an increase of between 39% and 41% compared to the same period last year.

For the full year, ComScore said that it expects revenue to grow by between 31% and 33% from 2009’s total of $127.7m.