Search »

Arbitron Revenue Rises 9.9%

Arbitron’s Q3 revenue was up 9.9% from the same period in 2007; costs and expenses were also up, by 14.5%, due mainly to planned spending for the commercialization of the PPM.

Net income for the quarter was $17 million, compared with $17.2 million for Q3 2007, according to the company.

Earnings before interest and income tax expense (EBIT) for the quarter were $28.2 million, compared with EBIT of $27.1 million for the third quarter of 2007.

Income from continuing operations for the quarter was $16.9 million or $0.63 per share (diluted), compared with $17.1 million, or $0.57 per share (diluted) in the third quarter of 2007.

For the nine months ended September 30, 2008, revenue was $275.2 million, an increase of 6.5 percent over revenue of $258.3 million for the same period in 2007.

Arbitron’s financial statement included comments about the company’s commercialization of the PPM. Stephen Morris, chairman, pres and CEO, pointed out that the company commercialized the PPM in 8 markets, saying, “We realize that any transition brings both challenges and opportunities. Our goal is to work through the challenges and to take advantage of the opportunities for the radio industry.”

The challenges he referred to include the civil action Arbitron commenced against the Southern District of New York,seeking a declaratory judgment and injunctive relief against the New York Attorney General. On October 10, Arbitron also brought a civil action in the United States District Court for the District of New Jersey seeking a declaratory judgment and injunctive relief against the New Jersey Attorney General. Each case seeks to prevent any attempt by the Attorneys General to restrain Arbitron’s publication of its PPM listening estimates.

Earlier this month, the State of New York commenced litigation against Arbitron in the Supreme Court of New York for New York County alleging false advertising and deceptive business practices in violation of New York consumer protection and civil rights laws relating to the commercialization of the PPM. The State of New Jersey also commenced litigation against Arbitron over the PPM, alleging violations of New Jersey consumer fraud and civil rights laws.