Rentrak Q3 Rev-Share Revenue Drops 21%

7 Feb, 2012 By: Erik Gruenwedel

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Rentrak Feb. 7 reported third-quarter (ended Dec. 31) home entertainment operating income of $2 million — down more than 16% from operating income of $2.4 million during the previous-year period.

The Portland, Ore.-based media measurement company posted $12.3 million in rev-sharing revenue from its namesake home entertainment segment — down 21% from revenue of $15.5 million during the previous-year period.

Rentrak attributed the decline to product mix, fewer participating retailers, increased competition from alternative distribution channels, a reduction in the number of significant theatrical rental titles made available during the fiscal 2012 third quarter, and Warner Bros.’ decision to release discs in the retail channel before offering it to the rental market.

Rentrak’s primary focus — advanced media and information — generated revenue of $9.9 million, up 20% from revenue of $8.2 million in the prior-year period. The AMI unit generated operating income of $1.1 million, compared with an operating loss of $655,000 last year.

“Marketplace momentum for our TV businesses is continuing to build, with more networks, stations, advertisers and advertising agencies using Rentrak’s census-based measurement currency,” CEO Bill Livek said in a statement. “We are successfully delivering on our promise to grow our Advanced Media and Information division to represent the majority of our revenue and operating income.”  

That digital success comes at a price, however, as Rentrak posted a wider net loss of $1.9 million, compared with a loss of $473,000 the year before. Revenue totaled $22.2 million — down $1.5 million from revenue of $23.7 million the year before.

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