NEWS10 November 2009

Rentrak reports 63% growth in media information business

US— Rentrak’s media information business has reported growth of 63% for the three months ended 30 September, with revenue rising to $5m off the back of its Essentials multimedia measurement services.

The division accounted for almost a quarter of the firm’s sales during the period, up from a 13% share at the same time last year, while contribution to gross margin dollars increased from 31% to 43%.

Rentrak’s main business line remains its Pay-Per-Transaction system, which enables revenue sharing between video rental outlets and movie distributors, though revenue was down 23% to $16.3m in the division as 25% fewer rental titles were available during the quarter.

Overall, sales were down 12% to $21.3m while operating income fell 61% to $500,000 on higher one-time and non-cash compensation expenses compared to last year, including $400,000 in severance charges.

Although the company has made a number of hires this year to boost its media research expertise, Rentrak CEO Bill Livek (pictured) said the company had “streamlined” its cost structure by finding “more efficient ways to propel growth”.

“As a result,” said Livek, “I am convinced that Rentrak is better positioned, not only to help our customers understand consumer viewing patterns across all digital media platforms, but to develop new and innovative products.”