chmcnfunds
10 years ago
Rentrak and Viacom Sign TV Ratings and Advanced Demographic Measurement Agreement
-- New Agreement To Enhance Viacom's Audience Insights
PORTLAND, Ore., May 1, 2015 /PRNewswire/ --
Rentrak (NASDAQ:RENT), the leader in precisely measuring movies and TV everywhere, today announced a TV ratings and Video on Demand measurement agreement with Viacom Media Networks. Viacom will utilize Rentrak's Advanced Demographics measurement capabilities, which include Rentrak's viewing information and integrated purchase information from IRI, Shopcom and IHS Polk's Automotive segmentations.
Rentrak's advanced analytical technology will support Viacom's ability to precisely target consumer audiences. Rentrak provides access to a broad range of consumer insights from the cars consumers drive to the products in their shopping carts. This capability supports Viacom's advanced data approach, including the recently announced Viacom Vantage, a data-driven advertising product that gives advertisers the flexibility to define and reach custom audiences.
Colleen Fahey Rush, Executive Vice President of Strategic Insights and Research for Viacom Media Networks, said, "Viacom is leading the industry with a comprehensive approach, fusing the power of research and insights to drive value and opportunity. Our partnership with Rentrak further strengthens our insights arsenal and our ability to unlock new levels of targeting."
"We are excited to welcome Viacom to our growing list of national network clients," said Rentrak's Vice Chairman and CEO Bill Livek. "We are proud to partner with them to support their products and look forward to helping them gain greater insights that will highlight the value of their audience through our measurement and analytics."
Rentrak's television ratings service is the only fully-integrated system of detailed satellite, telco and cable TV viewing information from more than 31 million TVs nationwide including granular information for TV stations and cable networks in all 210 local markets.
About Viacom Media Networks
Viacom Media Networks, a unit of Viacom Inc (NASDAQ: VIA, VIAB), connects audiences with compelling content across television, motion picture, online, mobile and social platforms. Viacom's leading brands Nickelodeon, CMT, Nick Jr., TeenNick, Nicktoons, TV Land, Nick at Nite, MTV, VH1, Comedy Central, SPIKE, Logo, BET and CENTRIC reach over 3.2 billion subscribers worldwide in over 165 countries. Viacom continues to advance innovative, multiplatform advertising solutions for partners across linear, digital and social platforms. Viacom Vantage is the first-to-market, data-driven advertising product enabling advertisers to deeply customize and reach target consumers. Viacom Velocity's Echo leverages an insights-driven approach to harness our massive social footprint for content creation, distribution, amplification and optimization. Echo is powered by the Echo Social Graph, a groundbreaking, analytics platform that delivers measured earned media for our partners
About Rentrak
Rentrak (NASDAQ: RENT) is the entertainment and marketing industries' premier provider of worldwide consumer viewership information, precisely measuring actual viewing behavior of movies and TV everywhere. Using our proprietary intelligence and technology, combined with Advanced Demographics, only Rentrak is the census currency for VOD and movies. Rentrak provides the stable and robust audience measurement services that movie, television and advertising professionals across the globe have come to rely on to better deliver their business goals and more precisely target advertising across numerous platforms including box office, multiscreen television and home video. For more information on Rentrak, please visit www.rentrak.com.
RENTM
Contact for Rentrak:
Antoine Ibrahim
Office: (646) 722-1561
E-mail: aibrahim@rentrak.com
Read more: http://www.nasdaq.com/press-release/rentrak-and-viacom-sign-tv-ratings-and-advanced-demographic-measurement-agreement-20150501-00109#ixzz3YtRGb4Y0
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chmcnfunds
10 years ago
Could Rentrak Supplant Nielsen TV Ratings?
Mar. 23, 2015 6:30 AM ET | 1 comment | About: Rentrak Corporation (RENT)
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary
Shares of Rentrak fell significantly in early February after a downbeat earnings report and a slew of sell-side downgrades. We think the sell-off is overdone.
The company has a monopoly position in two of its three segments while the third (TV) is the growth driver for the company.
The company has an extremely visible ramp in revenue on the TV side as they consistently add new local and national channels to their platform.
Rentrak (NASDAQ:RENT) is a media measurement and information company that is being billed as the next Nielsen. The company has seen the stock chopped by one-third since the start of February on the prospects of slower growth. Nielsen has been the TV ratings authority for half a century but Rentrak is starting to threaten its previous dominance using a Big Data approach. Couple that with the problems that Nielsen has been experiencing over the last year and the opportunity for Rentrak to zoom to the forefront of the industry.
Business Model Provides Monopolies and Growth Driver
Rentrak bills itself as the entertainment industry's premier source for knowing- every day, every second, everywhere- who is going to the movies and who is watching TV or video across every screen. The company's proprietary technology allows it to measure the box office take at the "census-level around the globe and merger viewing information from millions of televisions with actual consumer behavior information."
The company has two business segments: Advanced Media and Information (AMI) which operates the media measurement services along with the Home Entertainment division (HE) which leases and services the measured results activity on film product from traditional brick-and-mortar, online, and kiosk retailers. Revenue is broken down into four distinct operating units: TV Everywhere, Movies Everywhere, OnDemand Everywhere, and Other. We believe that Rentrak has a competitive advantage in both Movies Everywhere and OnDemand Everywhere, while the TV Everywhere continues to be their growth driver.
TV Everywhere is the largest unit by revenue accounting for 41% of fiscal 2014 (fiscal year end is March 31). This business generated zero revenue just five years ago and represents the key growth driver for the firm going forward. We think as the firm adds more local TV stations around the country, TV Everywhere revenue will continue to grow at an exceptional rate. Currently, they measure approximately 430 of the nearly 2,000 local TV stations in the US. The average contract is between two and six years with strong renewal rates in the low 90% area. However, they often start as one-year 'trial deals' in order to entice the customer with the cost at a steep discount to Nielsen's price point. But once the client is 'hooked', they typically sign multi-year deals with significant price increases embedded into them.
On the national TV side, they continue to add the smaller channels providing the only measure of these outlets as Nielsen currently only measures the largest 100 channels. Management has noted that they have the goal of reaching 400 channels (no timetable has been given).
Between the local and national TV station adds, we think the company will see a significant ramp in revenue over the next two to three years as they expand their customer relationships with more broadcast operations. On the local side, they are adding upwards of fifty new stations per quarter, and thus have a nearly eight-year ramp of adding more local stations (to get to all 2,000). Management has guided an 80% revenue growth rate through fiscal 2016 (ending next March). We see continued success in their TV Everywhere business as they have a clear path to ramp up revenue before any pricing power is considered.
Even attaining the 2,000 station figure, we think they will still have strong pricing power to push through moderate-to-high price increases offsetting the slowdown (or cessation) of new station adds. At that point, they will be the 600-pound gorilla with significant clout in the industry.
The Monopoly Businesses Provide Stable Recurring Revenue Streams
The Movies Everywhere business (35.1% of revenues) measures nearly all of the movie screens in the US and approximately 95% of all movie screens worldwide, totaling roughly 100K theater screens. They provide real-time ticket sales information, allowing film studios to modify their advertising direction immediately. The business has no real competitor for the product after they bought Nielsen EDI for $15 million in 2010. As part of the transaction, Nielsen signed a long-term data license agreement with Rentrak for continued access to certain box office sales information for a select group of its existing products.
Currently, the company only has a few of the larger US studios signed up to receive the information along with a small footprint of small studios and some overseas. There is a considerable potential path to much higher revenue should they scale this business by signing many more studios. The renewal rate is an astounding 99% thus we think there is significant pricing power in the brand given the satisfaction with the product and lack of competition. Management has forecasted a 12% CAGR in revenue through the next two years.
The other monopoly business is OnDemand Everywhere (17% of 2013 revenues) which is the only company that collects and measures all video-on-demand television viewing information in the US from the 100+ million set-top-boxes from every operator or telecom company. This is a high margin business with decent, stable high-teens growth. Management has laid out a path to 20% growth over the next two years.
We believe these businesses will continue to grow steadily as more studios, operators, etc. want the information to make better advertising rate decisions or to target select demographics for their ads.
Recent Sell-Off A Buying Opportunity
We would argue that the shares were significantly ahead of themselves when they crested $80 per share just six weeks ago. The market was embedding very strong growth far into the future, which we believed was unsustainable and unrealistic. This was recently reiterated on the fiscal third quarter conference call where management noted that "80% TV Everywhere top line advances are now unsustainable."
Following the call, a slew of sell-side analysts downgraded the shares and significantly lowered their price targets with Wunderlich Securities going to $60 from $93 on significantly lower revenues and EBITDA estimates. We think the sentiment is now sufficiently negative and the expectations significantly re-rated that the market is now overshooting to the downside.
The margins inherent in the business allow for substantial scale with extremely high incremental margins after they sign a new relationship. We think some of the loss of momentum in the fiscal third quarter was due to gross margins falling 300 bps yoy. We would note that the decline was likely all due to integrating DirecTv and Cox into their TV Everywhere product. The fixed costs associated with such an integration are likely to extend for a few quarters but as revenue ramps will eventually offset those costs and gross margins should re-expand back out.
While TV Everywhere revenue growth did decline, the 76% yoy growth is still exceptional. As we suggested above, the TV segment is the growth driver of the business as the OnDemand and Movies segments are growing more slowly (although more steadily) between 10% and 20% per annum. Some of the sell-off is likely due to the TV segment slowing from 26.7% qoq to the current 11.1% qoq. We would counter that the segment is now likely to see more lumpiness in their results and that expectations for sustained 25%-35% qoq growth (80+% yoy growth) are not realistic. We think looking out on a longer-term timeline helps smooth out the lumpiness in new signings and provides a better look-through. While the top line did slow, it was not egregious. The 76% yoy increase was only slightly lower than the 84% yoy increase from the third quarter 2013 over the same quarter in 2012.
While the operating income (loss) was much larger than expected at $2.4 million, compared to a $1.8 million loss last year, adjusting for stock-based compensation and one-time costs associated with their iTVX acquisition in August of 2013 (including $600K of acquisition costs and $350K in reorganization expense), adjusted EBITDA actually jumped by 1.5 times to $3.6 million. The stock-based compensation expense was substantially higher but is due to their recent acquisition. According to their 10-K, the acquisition of iTVX in 2013 included contingent considerations (options), which pay out to employees when the price of the stock is above $21.80 per share. As the share price rose in the last year, the consideration increased as the fair value of the options rose.
Valuation
We think the difficulty in valuing a company that is on the cusp of breaking-out from a zero bound in earnings is creating volatility in the price. But that volatility is allowing the possibility of a great entry point at owning the shares. The growth initiatives are excellent and extremely visible for the company with strong barriers to entry preventing erosion of pricing power. We believe the new client add should remain fairly consistent even if revenue growth is lumpy.
The company's incremental margins are strong with management suggesting operating expenses will grow 20% yoy on average. The Movies Everywhere and OnDemand businesses have gross margins above 75% with EBIT margins around 25% for Movies and 45% for OnDemand. As they continue to grow these businesses, we think EBIT margins will eclipse 30% and 50% respectively in the next year and higher beyond. This provides quite the tailwind to their overall high growth profile.
We think the company can easily achieve $35-$40 million in EBITDA in fiscal 2017, and much more should they choke off the operating expense growth. Still, we think there is substantial leverage available in the system over the next two years. The potential growth is extremely compelling and that even though they are realizing outsized growth in operating expenses as they invest in new projects and expand their empire. Our work shows that the likely scenario is that EBITDA expands out to $39 million in fiscal 2016 (ending next March) and then approximately $66 million in fiscal 2017. Using a 20x multiple to that figure and adding in the net cash position of $85 million (no debt is on the balance sheet), equates to an intrinsic value of roughly $87, 60% upside from here.
But again, we think the path to that level will be volatile and non-linear, which is typically the case in companies that are fast-growing and just starting to earn a profit. We think investors can use weakness to accumulate shares and provide themselves a margin of safety.
(Source: Author's Calculation)
Conclusion
Rentrak's Big Data analysis uses second by second information with proprietary analytic tools to provide more useful information to advertisers. Just this past January, Nielsen started to feel the change in the wind when CNBC said it would no longer use its service believing that it was not adequately gauging their daytime audience. We believe Rentrak's broader reaching methods including census data and emphasis on specific information about consumer engagement have provided a compelling alternative. We like the more diverse business model with a stable, but growing Movies and OnDemand Everywhere businesses while they ramp fast the TV business. We think the sell-off last month is overdone and the company warrants a hard look by investors.
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chmcnfunds
10 years ago
Rentrak Given Average Recommendation of “Buy” by Brokerages (NASDAQ:RENT)
Posted by Hasmir Abdula on Mar 20th, 2015 // No Comments
Rentrak logoRentrak (NASDAQ:RENT) has earned an average recommendation of “Buy” from the seven brokerages that are presently covering the stock, American Banking & Market News reports. Three investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $72.72.
Rentrak (NASDAQ:RENT) opened at 57.49 on Friday. Rentrak has a one year low of $43.62 and a one year high of $87.40. The stock has a 50-day moving average of $59. and a 200-day moving average of $67.. The company’s market cap is $874.08 million.
Rentrak (NASDAQ:RENT) last posted its quarterly earnings results on Thursday, February 5th. The company reported $0.12 EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.07) by $0.19. The company had revenue of $26.90 million for the quarter, compared to the consensus estimate of $28.37 million. During the same quarter in the prior year, the company posted $0.12 earnings per share. The company’s quarterly revenue was up 37.9% on a year-over-year basis. Analysts expect that Rentrak will post $-0.68 EPS for the current fiscal year.
Several analysts have recently commented on the stock. Analysts at Brean Capital reiterated a “buy” rating and set a $86.00 price target on shares of Rentrak in a research note on Thursday, March 12th. Analysts at Piper Jaffray downgraded shares of Rentrak from an “overweight” rating to a “neutral” rating and set a $69.00 price target on the stock in a research note on Friday, February 6th. They noted that the move was a valuation call. Finally, analysts at Wunderlich downgraded shares of Rentrak from a “buy” rating to a “hold” rating and lowered their price target for the stock from $93.00 to $60.00 in a research note on Friday, February 6th.
Rentrak Corporation is a global media measurement and information company serving the entertainment, television, video and advertising industries. Its Software as a Service (NASDAQ:RENT) technology merges television viewership information from over 100 million televisions (TVs) and devices with consumer behavior and purchases information (Advanced Demographics) across multiple platforms, devices and distribution channels.
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http://www.mideasttime.com/rentrak-given-average-recommendation-of-buy-by-brokerages-nasdaqrent/378092/
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chmcnfunds
10 years ago
Short Interest in Rentrak Increases By 29.4% (RENT)
March 18th, 2015 • 0 comments • Filed Under • by ABMN Staff
Shares of Rentrak (NASDAQ:RENT) saw a large growth in short interest in February. As of February 27th, there was short interest totalling 1,665,763 shares, a growth of 29.4% from the February 13th total of 1,286,856 shares, Stock Ratings Network reports. Approximately 17.6% of the company’s shares are short sold. Based on an average daily volume of 319,014 shares, the short-interest ratio is currently 5.2 days.
Several analysts have recently commented on the stock. Analysts at Brean Capital reiterated a “buy” rating and set a $86.00 price target on shares of Rentrak in a research note on Thursday, March 12th. Analysts at Piper Jaffray downgraded shares of Rentrak from an “overweight” rating to a “neutral” rating and set a $69.00 price target on the stock in a research note on Friday, February 6th. They noted that the move was a valuation call. Finally, analysts at Wunderlich downgraded shares of Rentrak from a “buy” rating to a “hold” rating and lowered their price target for the stock from $93.00 to $60.00 in a research note on Friday, February 6th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. Rentrak presently has an average rating of “Buy” and a consensus target price of $72.72.
Rentrak (NASDAQ:RENT) opened at 56.77 on Wednesday. Rentrak has a one year low of $43.62 and a one year high of $87.40. The stock’s 50-day moving average is $60. and its 200-day moving average is $67.. The company’s market cap is $863.13 million.
Rentrak (NASDAQ:RENT) last issued its quarterly earnings data on Thursday, February 5th. The company reported $0.12 EPS for the quarter, beating the Thomson Reuters consensus estimate of ($0.07) by $0.19. The company had revenue of $26.90 million for the quarter, compared to the consensus estimate of $28.37 million. During the same quarter in the prior year, the company posted $0.12 earnings per share. The company’s quarterly revenue was up 37.9% on a year-over-year basis. On average, analysts predict that Rentrak will post $-0.68 earnings per share for the current fiscal year.
Rentrak Corporation is a global media measurement and information company serving the entertainment, television, video and advertising industries. Its Software as a Service(NASDAQ:RENT) technology merges television viewership information from over 100 million televisions (TVs) and devices with consumer behavior and purchases information (Advanced Demographics) across multiple platforms, devices and distribution channels.
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http://www.americanbankingnews.com/2015/03/18/short-interest-in-rentrak-increases-by-29-4-rent/
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chmcnfunds
10 years ago
Brean Capital Reaffirms Buy Rating for Rentrak (RENT)
March 12th, 2015 - 0 comments - Filed Under - by Mindy Fischer
Rentrak logoRentrak (NASDAQ:RENT)‘s stock had its “buy” rating reissued by Brean Capital in a research note issued on Thursday. They currently have a $86.00 target price on the stock. Brean Capital’s target price indicates a potential upside of 53.54% from the stock’s previous close.
Shares of Rentrak (NASDAQ:RENT) traded up 0.43% on Thursday, hitting $56.25. The stock had a trading volume of 76,905 shares. Rentrak has a 1-year low of $43.62 and a 1-year high of $87.40. The stock’s 50-day moving average is $63. and its 200-day moving average is $67.. The company’s market cap is $855.23 million.
Rentrak (NASDAQ:RENT) last released its earnings data on Thursday, February 5th. The company reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.19. The company had revenue of $26.90 million for the quarter, compared to the consensus estimate of $28.37 million. During the same quarter in the previous year, the company posted $0.12 earnings per share. The company’s revenue for the quarter was up 37.9% on a year-over-year basis. Analysts expect that Rentrak will post $-0.67 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Piper Jaffray downgraded shares of Rentrak from an “overweight” rating to a “neutral” rating and set a $69.00 price target on the stock in a research note on Friday, February 6th. They noted that the move was a valuation call. Separately, analysts at Wunderlich downgraded shares of Rentrak from a “buy” rating to a “hold” rating and lowered their price target for the stock from $93.00 to $60.00 in a research note on Friday, February 6th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Rentrak has an average rating of “Buy” and a consensus price target of $72.72.
Rentrak Corporation is a global media measurement and information company serving the entertainment, television, video and advertising industries. Its Software as a Service (NASDAQ:RENT) technology merges television viewership information from over 100 million televisions (TVs) and devices with consumer behavior and purchases information (Advanced Demographics) across multiple platforms, devices and distribution channels.
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http://www.intercooleronline.com/stocks/brean-capital-reaffirms-buy-rating-for-rentrak-rent/223340/
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chmcnfunds
10 years ago
Rentrak's TV Measurement Currency Integrated with Mediaocean Spectra Software Platform
PORTLAND, Ore., Feb. 26, 2015 /PRNewswire/ --
Rentrak (NASDAQ:RENT), the leader in precisely measuring movies and TV everywhere, today announced its television measurement ratings can now be used as a currency in Mediaocean's Spectra OX Spot and Network platforms, leading media buying tools for the advertising industry.
Mediaocean's Spectra OX platform allows agencies and brands to efficiently manage and coordinate advertising workflow- from planning to buying, through traffic, invoicing, and paying. With Mediaocean, Rentrak is able to provide clients with a more holistic view of view audiences and analytics.
"This partnership opens doors for buyers, providing them with a one-stop shop to manage media campaigns and puts them directly in touch with Rentrak," said Nick Galassi, President, Agency Systems at Mediaocean. "Through our work with Rentrak, buyers are now able to get a holistic view of consumer analytics, enabling them to make better, more targeted ad buying decisions."
"We have worked very closely with Mediaocean to integrate our TV measurement into their buying platforms," said Bill Livek, vice chairman and CEO at Rentrak. "This integration helps major ad agency holding companies, independent agencies and media buying services better use our services."
Rentrak's TV ratings service is the only fully-integrated system of detailed nationwide satellite, telco and cable TV viewing information from more than 31 million TVs, and Video on Demand viewing from more than 117 million TVs in the U.S. and Canada, including granular information for TV stations in all 210 local markets projected to the U.S. population.
About Mediaocean
Mediaocean is the leading software platform provider for the marketing world. Its open traditional and digital media platforms empower businesses and professionals across the global marketing ecosystem with intelligent automation, efficiency, and flexibility in their workflow - from planning and buying, to analyzing and optimizing, to invoicing and payments. With over 80,000 advertising professionals conducting 7 million transactions daily across all media channels and managing $100 billion annually through its platforms, Mediaocean drives the marketing universe forward. Mediaocean is headquartered in New York, with six offices worldwide. Learn more at www.Mediaocean.com, or connect with Mediaocean on LinkedIn, Facebook or Twitter.
About Rentrak
Rentrak (NASDAQ: RENT) is the entertainment and marketing industries' premier provider of worldwide consumer viewership information, precisely measuring actual viewing behavior of movies and TV everywhere. Using our proprietary intelligence and technology, combined with Advanced Demographics, only Rentrak is the census currency for VOD and movies. Rentrak provides the stable and robust audience measurement services that movie, television and advertising professionals across the globe have come to rely on to better deliver their business goals and more precisely target advertising across numerous platforms including box office, multiscreen television and home video. For more information on Rentrak, please visit www.rentrak.com.
RENTM
Contact for Rentrak:
Antoine Ibrahim
Office: (646) 722-1561
E-mail: aibrahim@rentrak.com
Read more: http://www.nasdaq.com/press-release/rentraks-tv-measurement-currency-integrated-with-mediaocean-spectra-software-platform-20150226-00304#ixzz3SrvDBgvO
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