Rental, Taxes Help Rentrak Up Q4 Profit 37%9 Jun, 2009 By: Erik Gruenwedel
Steady revenue-sharing DVD rentals and a tax surplus contributed to Rentrak Corp. posting fourth-quarter (ended March 31) fiscal year 2009 income of $2.2 million, compared to income of $1.6 million during the previous year period.
Without the $866,000 tax benefit, income for the Portland, Ore.-based data-tracking company would have fallen more than 15% to $1.35 million.
The company's pay-per-transaction division totaled $19 million, down slightly from $19.5 million in the same quarter last year. The reduction in rev-share revenue resulted from shipping fewer guaranteed units in the fiscal fourth quarter.
Rentrak’s burgeoning advanced media information (AMI) unit increased revenue more than 16%, to $3.3 million from $2.8 million, principally reflecting incremental revenue from new and existing customers of the company's suite of multimedia measurement services.
The company now tracks TV audience habits from 100 million set-top boxes, in addition to nascent video-on-demand (VOD) and digital-download tracking for a variety of cable multisystem operators, including, most recently, WealthTV.
The AMI segment grew to about 15% of consolidated revenues and contributed nearly 27% of consolidated gross margin dollars in the fourth quarter.
Total revenues remained flat at $22.3 million, compared to $22.2 million last year.
For the fiscal year, revenue increased to $95 million from $93.2 million in fiscal 2008. AMI revenue increased about 22%, to $12.6 million from $10.4 million last year.
Rentrak’s rev-share PPT revenue topped $82.3 million, about par with last year’s $82.8 million reflecting stabilization in the company's legacy business.
Operating income for fiscal 2009 was $5.2 million, compared to $5.6 million in fiscal 2008. Net income increased to $5.4 million from $4.6 million last year.
The company generated $8 million in cash from operating activities in fiscal 2009, compared with $3.1 million in fiscal 2008.