Revenues Up at Rentrak13 Aug, 2002 By: Joan Villa
Rentrak Corp. boosted consolidated quarterly revenues by 8.3 percent to $22.4 million and earned $309,517, or 3 cents per diluted share, versus a net loss of $1.9 million in the year-ago quarter.
Revenue growth in the fiscal first quarter ended June 30 was fueled by 42 percent higher unit shipments of VHS and DVD, but the increase was offset by lower rental transactions on those units, the company reported.
However, on the heels of recent announcements that major retail chains have negotiated a handful of DVD revenue-sharing deals, CEO and chairman Paul Rosenbaum said he expects three or four major studios to follow suit and provide DVD product through Rentrak's pay-per-transaction system before the end of the year.
“If they offer it to everyone else, they're going to offer it to us too, so I believe we're going to have three or four DVD deals in the near future simply based on what's going on in the marketplace today,” he reasoned.
Rentrak is also working to offer major video games under the pay-per-transaction system, he said.
For the full year, Rentrak expects consolidated revenues from continuing operations to grow 5 percent to 10 percent to between $100 million and $105 million and a modest profit for Web fulfillment division 3PF.