Comscore’s Q2 Revenue Declines Again As It Narrows Vision On TV

Comscore is reeling. Interim CEO Dale Fuller acknowledged as much to investors Tuesday when the company reported its second quarter earnings.

Comscore has slimmed down to focus on emerging categories in advanced television, including “under-addressable” television, which is more measurable linear content, and cross-platform ratings for digital video, video on demand and TV.

But will that be enough for Comscore to regain its footing in the public market?

Comscore’s total Q2 revenues declined 4.4% to $96.9 million.

Fuller expects its annual growth rate to be flat for the rest of the year, which would be a positive sign after declines last quarter and year. He also predicts the company will be cash-flow positive by the end of 2019.

The company cut 10% of its workforce this quarter. Fuller called it a “difficult but necessary decision” that saves $20 million in the next year and frees up the resources to focus on emerging growth categories, even if that means some legacy products decline faster.

Comscore may shed more headcount or business units moving forward. The company is in a comprehensive strategic review, Fuller said.

Although executives wouldn’t speculate on potential outcomes, Comscore investors pressed management about whether the panel-based data collection or Comscore Movies analytics, which reports box office ticket sales, might be spun off if the company is laser-focused on new TV opportunities.

“The opportunities in front of us are substantial,” Fuller said.

For instance, Fuller said Comscore won a multiyear measurement contract with Xandr’s addressable advertising consortium, which is a supply-side offering that includes WarnerMedia and inventory from Altice and Frontier.

Local TV ratings are also swinging in Comscore’s favor, Fuller said. In the past year, three major distributors – Nexstar, Scripps and Gray – switched station ratings from Nielsen.

“As we roll out products and show those (results) and new partnerships, it will start to show that this could be a growth story,” he said.

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