NEWS15 June 2010

Essentials customers drive Rentrak revenue

Financials North America

US— Multi-screen media measurement firm Rentrak has posted a 12% rise in revenue for the fourth quarter of fiscal 2010 but a decline in sales for the year as a whole.

During the fourth quarter revenue was up to $25m compared to $22.3m in the final quarter of fiscal 2009. The firm said that this was due to growth in the Advanced Media Information division, which saw revenue more than double from $3.3m to $6.9m – partly due to contributions from Nielsen EDI, which Rentrak acquired last year.

However, costs attributed to the acquisition also contributed to Rentrak posting an operating loss of $0.2m for the period, compared to operating income of $1.8m a year ago.

CEO Bill Livek said: “Our AMI division grew exceptionally well this quarter and represents almost 28% of our total revenue and is now roughly half of our gross margin dollars. With many new customers now utilising our suite of multimedia measurement services, we are cementing our marketplace position by successfully establishing new metrics and a new database currency to help our customers increase their revenue and profits.”

For the full year the firm saw its consolidated revenue fall to $91m from $95m but the AMI division again saw growth – thanks to an increasing number of companies signing up to its Essentials suite of audience measurement services. Revenue in the AMI division jumped 57% to $19.8m from $12.6m.

The firm posted an operating loss of $0.9m, compared to operating income of $5.2m in fiscal 2009, which the firm said was due to one-off costs – some of which were tied to the EDI acquisition.

• Rentrak’s next set of results should be boosted by the signing of two more deals for its audience measurement services. Turner Broadcasting Systems has renewed its deal to use the OnDemand Essentials service while Post-Newsweek has signed up to use the local market StationView Essentials service for its WLPG channel in Miami and KPRC in Houston.