Rentrak Posts Best Home Video Fiscal Quarter Since 200713 Jun, 2013 By: Erik Gruenwedel
It is the strongest home video growth rate since Q3 in 2007
Rentrak June 13 reported fourth-quarter (ended March 31) home entertainment operating income of more than $2 million on operating revenue of $14 million — the latter up $1 million from the previous-year period.
Portland, Ore.-based Rentrak, which primarily focuses on data measurement in digital, theatrical and television content distribution, cut its teeth and is named after its flagship disc rental revenue-sharing business for independent video stores.
Indeed, home entertainment revenue was just $600,000 less than total revenue for the advanced media and information business, which represented 51% of Rentrak’s total revenue.
Gross margin for the home entertainment business was 27% for the quarter, compared with 33% for the same period last year, primarily resulting from a larger contribution from the company's pay-per-transaction business, including the addition of a major rental chain client with lower margins.
Home entertainment generated fiscal-year revenue of $45.1 million, down 9% from revenue of $49.7 million last year. Fiscal-year operating income topped $7 million, down from $9.5 million last year. Regardless, Rentrak expects 5% growth in home entertainment revenue for fiscal 2014, with gross margins approximating 27%.
“Our success largely reflected strong gains in our TV and movie businesses, as well as the stabilization of our home entertainment business, which generated its strongest quarterly growth rate since the third quarter of fiscal 2007," CEO Bill Livek said in a statement.