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Rise in Revenues at Arbitron | January 31 2002 |
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Arbitron Inc has posted its financial results for the fourth quarter and year ended December 2001, showing a rise of 10% in annual revenue over the year. For the fourth quarter, Arbitron reported revenue of USD51.4 million, an increase of 9.0% over the fourth quarter of 2000, whilst earnings before interest and taxes (EBIT) for the quarter were USD9.3 million, compared with EBIT of USD11.9 million during the same period last year. Net income for the quarter came in at USD2.6 million, compared with USD7.2 million for the fourth quarter of 2000. Cost and expenses were higher than last year because of increased spending related to the RADAR(r) service, Webcast measurement, the Portable People Meter initiative, royalties, data collection, and research and development. Interest expense related to the debt incurred in connection with the reverse spin-off from Ceridian on March 30, 2001 also contributed to the year over year increase. For the 2001 year, total revenue reached USD227.5 million, an increase of 10% over revenue of USD206.8 million reported for the same period last year. Whilst EBIT stood at USD75.5 million, compared to USD74.8 million during the same period last year, net income reached USD36.5 million compared with USD45.3 million last year. The decline in net income is attributable to the interest expense related to the USD250 million in debt incurred at consummation of the reverse spin-off. According to Stephen Morris, president and chief executive officer of Arbitron, 'A weaker-than-expected economic environment caused a slowdown in new sales during the fourth quarter. Despite this challenge, we succeeded in generating double-digit revenue growth for the year. Our core business, exclusive of the RADAR service, which we acquired at the beginning of the third quarter, grew by 8.2% and we believe remains well positioned for further growth. We continue to explore acquisitions that can expand our existing market presence and add value for our customers.' Mr. Morris added, 'In the nine months since our reverse spin, Arbitron has made significant progress in the development of the Portable People Meter, our new audience measurement technology. We have also expanded our national radio ratings services through the acquisition of RADAR, and increased our international presence with our ratings contracts in Mexico City.' Simple printable version of this article. Email this article to a friend.
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