PPM boosted Arbitron revenues in Q1


ArbitronPrice increases built into Arbitron’s contracts with radio groups for Portable People Meter (PPM) ratings pretty much guarantee that the company’s revenues will grow year-over-year each quarter. That was indeed the case for Q1.

Net revenues were up 5.5% to $106.4 million, with phased-in price increases for PPM cited as the main driver.

Operating income grew 7.4% to $31.2 million and EBITDA was up 8.1% to $36.6 million. Net income increased 9.6% to $17.8 million, or 64 cents per share, compared to $16.2 million, or 59 cents per share, a year earlier.

Arbitron doesn’t provide Wall Street with quarterly guidance, but did reiterate its full year guidance. 2012 revenues are expected to gain 5-7%, with earnings per share up 8-15%.

2012 won’t be a big year for Arbitron as far as having to deal with contract renewals. The ratings company’s biggest client, Clear Channel, was renewed in 2010 through 2016 and #2 CBS Radio isn’t up for renewal until 2013.