Rentrak Posts Fiscal 2007 Quarter, Year Gains12 Jun, 2007 By: Erik Gruenwedel
Despite a 4% drop in its pay-per-transaction (PPT) business segment, Rentrak Corp. reported fourth quarter 2007 (ended March 31) income of $1.7 million, up almost 6% from $1.6 million during the same period last year.
Quarterly revenues for the Portland, Ore.-based media measurement company remained flat at $28.3 million, compared to $28.4 million last year.
The advanced-media and information (AMI) segment, which includes Rentrak's expansive “essentials” data tracking of box office, on-demand, supply chain, retail and home video, saw fourth quarter revenue increase almost 24% to $4.4 million, compared to $3.6 million last year.
Rentrak currently has 72 client subscribers to its on-demand data-tracking service.
For fiscal year 2007, AMI revenue increased more than 27% to $15.4, compared to $12.1 million in fiscal 2006.
Rentrak chairman and CEO Paul Rosenbaum, in an investor call, said the company was negotiating with a major unnamed content provider reassessing its PPT movie rental business.
“If we succeed in reaching a new revenue-sharing agreement with this program supplier, we will revise our PPT revenue outlook accordingly,” Rosenbaum said.
The CEO said Rentrak would pursue PPT programs with select non-PPT video retailers across the country in fiscal 2008.
To help offset eroding the PPT business, Rentrak is expanding data monitoring of online rental services run by Blockbuster and Netflix.
With 170 million video downloads projected in 2007, Rosenbaum said Rentrak would increase data collection of electronic distribution.
Fiscal year 2007 profit increased more than 35% to $6 million, compared to income of $4.5 million during fiscal 2006. Revenues for the year increased 13.5% to $106 million, from $93 million last year.
PPT business increased more than 11% to $90.6 million, compared to $81.3 million last year, according to Rentrak.
Revenue topped $100 million for the first time in five years.
Separately, Rentrak announced its theatrical tracking service is now collecting box office data from theater locations in Hong Kong and India.
Both Far East countries feature vibrant box offices with India having the highest per capita movie-going audience in the world with nearly 1,000 theatrical releases and almost $4 billion in box office receipts annually, according to Rentrak.
Hong Kong generates about $1 billion in annual box office receipts.
To spearhead its international theatrical measurement services, Rentrak named 27-year industry veteran Steve Perrin to the position of SVP, international.
Most recently, Perrin served as deputy head of distribution and exhibition of the U.K. Film Council. London-based Perrin will be responsible for management of international territory development and operations.
He reports to Ron Giambra, SVP, theatrical worldwide for Rentrak.