Rentrak Profit Falls 20%9 Nov, 2009 By: Erik Gruenwedel
A 25% drop in available new rentals contributed to Rentrak Corp. posting second-quarter (ended Sept. 30) net income of $676,000, compared to income of $842,000 during the prior-year comparable period.
The Portland, Ore.-based data measurement company said revenue at its flagship pay-per-transaction (PPT) revenue-sharing business dropped 23% to $16.3 million, compared to revenue of $21.2 million last year due to fewer new rental titles released in the period.
Rentrak operates rental revenue-sharing distribution deals between the studios and third-party rental services, including Blockbuster, Netflix, Hollywood Video and Movie Gallery.
Revenue at its advanced media information (AMI) division, which includes data tracking for cable set-top box operators, TV viewers and box office, increased 63% to $5 million, from $3.1 million last year.
Rentrak said the AMI unit, which represented 24% of consolidated revenue and 43% of consolidated gross margin dollars in the quarter, benefited from a completed contract with an unnamed client that is expected to generate less revenue in subsequent quarters.
Overall revenue declined 12% to $21.3 million, compared to $24.3 million last year.