ARB Arbitron PPT 2012-03-30

ARB Arbitron PPT 2012-03-30 - n Arbitron Analysts: n n 1...

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Logo Analysts: n Arbitron n Matthew Katzenbach n Yihong Shi 1
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Investment Theses Company Industry Valuation Summary Overview Source s: n ARB 10K 2 n Involved in both the advertising and radio industries n Industry leader in radio ratings n Incorporated in 1949 and headquartered in Columbia, Maryland n 2011 performance: Sales growth 6.8% Net income increased 5.5% Gross profit margin increased 12.9% EBITDA margin increased 17.7% Overview
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Investment Theses Company Industry Valuation Summary Overview Source s: Recommendation n Watchlist Recommendation: ADD n Valuation Recommendation: HOLD n Arbitron is consistently the dominant player in US Radio ratings and its current price is reasonable. n Revenues have rebounded and should increase over the next five years, albeit at decreasing rates. n Margins have expanded and are slated to slowly increase n A challenging economic environment for advertising and radio industries as well as difficulty in obtaining survey/PPM participants could adversely affect the firm’s financial and growth prospects. n Major customer isn’t doing well 3
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Investment Theses Company Industry Valuation Summary Overview Source s: n IBIS World Industry Advertising Service Industry (US) n Rev: 29.2 billion n 19% = 5.53 billion n ARB Market Share 422.31/5537.7 = 13.11% n Major Players: Omnicorn Group Inc. 10.7% The Interpublic Group of Companies Inc. 7.5% WPP PLC 7.0% Publicis Groupe SA 4.1% 4 Produce and Services segmenta
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Investment Theses Company Industry Valuation Summary Overview Source s: n IBIS World Industry Radio Industry (US) 5
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Investment Theses Company Industry Valuation Summary Overview Source s: n ARB 10K n IBIS World Industry n Major Trend: From traditional services to digital media Analyst forecast 4% annual growth rate till 2016 Clients looking for one-stop shop n Key competitors of ARB: SCOR; HPOL; NLSN; RENT 6
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This note was uploaded on 03/30/2012 for the course BUSM 409 taught by Professor Bryansudweeks during the Winter '11 term at BYU.

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ARB Arbitron PPT 2012-03-30 - n Arbitron Analysts: n n 1...

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