Arbitron 4Q profit plunges as costs rise |
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Thu, 15 Feb 2007 14:58
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NEW YORK (AP) - Arbitron Inc., which provides radio station ratings, said Thursday fourth-quarter earnings fell 56 percent as costs surged on the company's transition to digital data collection.Net income plunged to $4.9 million, or 17 cents per share, from $11.2 million, or 36 cents per share, a year ago. The result surpassed expectations on Wall Street, where analysts were expecting 16 cents per share.Revenue added 5 percent to $79.3 million from $75.3 million a year ago and was in line with Wall Street estimates.Costs jumped 18 percent to $63.8 million, mostly for the introduction of a new digital ratings system called the Portable People Meter in some major markets. Arbitron data collectors in most markets take notes on what they hear, but the new device allows the information to be collected automatically.Radio stations and advertisers use Arbitron ratings to set commercial rates. Radio ad revenue has been flat in recent periods as listeners abandon commercial broadcasts for recorded music on portable devices or satellite radios.For the year, profit fell 25 percent to $50.7 million while sales rose 6 percent to $329.3 million.In electronic premarket trading, Arbitron shares lost 25 cents to $46.39.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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