Arbitron Costs Outstrip Revenue Growth

Radio ratings giant Arbitron has reported a 9% drop in net income from $3.7m in Q4 2007 to $3.4 in the fourth quarter of 2008, despite revenue increasing 16.8% to $93.6m.

The revenue growth was offset by an 18.2% increase in costs and expenses for the fourth quarter; from $79.9m in 2007 to $94.5m in 2008. This was due primarily to planned expenditures for the commercialization of the Portable People Meter (PPM) ratings service, and legal costs to resolve claims made by the New York and New Jersey Attorneys General that the PPM undercounts the listening habits of minorities.

For the full year ended December 31, 2008, revenue increase 9% to $368.8m from $338.5m for the same period in 2007, while costs and expenses for the year increased by 11.9% from $279.2m in 2007 to $312.4m in 2008.

Income from continuing operations for the full-year 2008 decreased to $37.2m from $40.5m in 2007.

For the full year 2009, Arbitron says it expects revenue to increase between 6% and 10%, and earnings per share (diluted) to increase between 3% to 14% - ie, $1.40 and $1.55 versus $1.36 in 2008.

President and CEO Michael Skarzynski commented: 'Our goal is to maintain our leadership position in radio research in markets large and small while helping the radio industry prosper once again in the highly competitive media environment.'

Web site: www.arbitron.com .