Rentrak: Digital Data Tops Disc Rev-Share for the First Time7 Nov, 2012 By: Erik Gruenwedel
Quarterly loss mushrooms to $18.2 million due to stock-based compensation agreements
Rentrak Corp. Nov. 7 reported second-quarter (ended Sept. 30) revenue from its digital media data tracking business of $13.2 million, up from revenue of $9.8 million during the previous-year period.
The tally represented 59% of the Portland, Ore.-based company’s revenue compared with 45% last year — the first time media measurement topped Rentrak’s trademark disc rental revenue-sharing business.
Revenue in the home entertainment business was $9.3 million, compared with $12.1 million last year. The decline in the home entertainment business primarily reflected a significant reduction in box office titles made available by movie studios during the period due to the summer Olympic Games.
“In home entertainment, a business that generates very healthy cash flow, our rate of decline was less than anticipated despite the significant headwinds caused by a shortage of theatrical releases from the movie studios created by consumers' focus on viewing the summer Olympics," CEO Bill Livek said in a statement.
Overall, Rentrak posted a net loss of $18.2 million compared with a loss of $262,000 last year. The loss was primarily due to $16.5 million in costs associated with the conversion of the company's stock-based compensation agreement with Dish Network, $1.5 million in stock-based compensation costs and $77,000 in acquisition and reorganization costs.
Without the stock-based compensation charges, Rentrak posted a loss of $109,000.