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NetRatings Revenue Falls in Third Quarter
Nielsen//NetRatings achieved $16.8m in revenues in the third quarter of 2005 - an 8% increase from Q3 2004, but a 1.75% fall from Q2 2005. The company's net loss for the quarter fell to $3.7m - a 14% year-on-year decrease - despite $1.7m spent restructuring the European business.
The restructure involved moving some development activities from Paris to Milpitas, California, and 'streamlining European sales and measurement science organizations'. William Pulver, President and CEO, states: 'While this action triggered one-time severance expenses, we believe it creates a more efficient and effective organization.'
Pulver says the decline in revenue from Q2 was due to 'softness in our European business and the
continued impact of foreign exchange rates'. However, he adds that the company ended the quarter with 1,574 clients - up from 1,485 at the end of Q2 2005.
He remains confident that NetRatings is 'positioned for a strong end to 2005', and expects 'healthy revenue growth and EBITDA profitability in the fourth quarter'.
The company has also announced plans to repurchase up to $25m of the company's common stock. The exact amount and timing will depend on market conditions.
The company is online at www.nielsen-netratings.com.
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