Price increases built into Arbitron’s contracts with radio groups for Portable People Meter (PPM) ratings pretty much guarantee that the company’s revenues will grow year-over-year each quarter. That was indeed the case for Q1.
Net revenues were up 5.5% to $106.4 million, with phased-in price increases for PPM cited as the main driver.
Operating income grew 7.4% to $31.2 million and EBITDA was up 8.1% to $36.6 million. Net income increased 9.6% to $17.8 million, or 64 cents per share, compared to $16.2 million, or 59 cents per share, a year earlier.
Arbitron doesn’t provide Wall Street with quarterly guidance, but did reiterate its full year guidance. 2012 revenues are expected to gain 5-7%, with earnings per share up 8-15%.
2012 won’t be a big year for Arbitron as far as having to deal with contract renewals. The ratings company’s biggest client, Clear Channel, was renewed in 2010 through 2016 and #2 CBS Radio isn’t up for renewal until 2013.
