Arbitron Delays PPM Rollout; Revises Earnings
Audience-Measurement Service Delayed Until at Least September in Nine Markets
By Jon Hemingway & John Eggerton -- Broadcasting & Cable, 11/27/2007 3:00:00 PM
Media-research firm Arbitron is delaying its Portable People Meter rollout in nine cities, and it revised its earnings guidance as a result.
The company will delay rollout of its audience-measurement service until at least September 2008 for nine markets including New York, Los Angeles and Chicago. As a result, Arbitron revised its 2007 earnings guidance to $1.30-$1.35 per share versus $1.35-$1.45 previously. The company also expects foregone revenue and costs associated with producing diary estimates (its current technique of measurement) to reduce 2008 earnings by $0.22-$0.33 per share.
“We remain confident in the audience estimates that the Portable People Meter service is producing. However, over the past three weeks, feedback from our customers, the Media Rating Council and other constituencies has led us to conclude that the radio industry would be better served if we were to delay further commercialization of the PPM in order to address their issues,” Arbitron chairman, president and CEO Steve Morris said in a statement.
The delay has implications for TV, as well, where the portable technology has been used to measure out-of-home viewing. Arbitron has been looking for potential TV customers in those markets, according to a spokesman, but it had not announced any deals. “Obviously if we haven’t fired up L.A. or Chicago, we can’t deliver those TV numbers there,” he said, adding that the company’s priority at the moment was its radio customers.
Arbitron stock slid 29% to a 52-week low of $34.81 per share during Tuesday’s session.