Rentrak Ups Q1 Income8 Aug, 2011 By: Erik Gruenwedel
Digital media data tracking surges while bread-and-butter studio revenue-sharing business declines
Rentrak Corp. reported first-quarter (ended June 30) net income of $399,000 compared to income of $87,000 during the previous-year period.
Revenue from the company’s namesake home entertainment business declined about 19% to $13.4 million from $16.6 million during the previous-year period.
Portland, Ore.-based Rentrak primarily started managing DVD and Blu-ray Disc rental rev-share agreements between the studios and independent video stores.
Consolidated revenue topped $22.4 million from $24.6 million last year, reflecting a decline in the company’s home entertainment segment related to fewer customers and fewer rental units distributed for the six-month period compared with the same period last year.
Throughout the past several years the company has diversified its business portfolio to incorporate data tracking of digital, theatrical and video-on-demand movies and video games, among other meterics.
“I am proud that our Advanced Media group now accounts for 40% of our revenues, up from 12% about two years ago when I joined the company as CEO,” Bill Livek said in a statement.
During the quarter, Rentrak added new television stations, cable networks and ad agencies clients, including Morgan Media Group, Gray Television, NBC Universal Media, Annulet, OMD and PHD. Rentrak now has agreements with six of the top 13 media-buying ad agencies.
“We [continue] developing a strong syndicated and recurring revenue business which should provide increasing value to Rentrak’s shareholders,” Livek said.