Arbitron radio ratings co. 2Q earnings fall 84 pct

The New York-based company posted earnings of $600,000, or 2 cents per share, in contrast to $3.8 million, or 13 cents per share, in the same quarter a year earlier. Revenue was $78.7 million, 3.7 percent higher than a year earlier.

Analysts surveyed by Thomson Financial, on average, expected earnings of 3 cents per share on revenue of $81.37.

The increased expenses relate to Arbitron's transition from 1960s-era paper diaries in which radio listeners manually recorded their listening habits to electronic devices that record all the radio a participating listener encounters.

The Portable People Meter service, which Arbitron introduced last year but delayed launching until June, is in place in Philadelphia and Houston and will roll out to other top radio markets over the rest of 2008.

Arbitron reiterated its forecast for fiscal 2008 of an 8 percent to 10 percent increase in revenue from continuing operations. Earnings per share is forecast at $1.30 to $1.44.

Analysts are forecasting $1.42 per share in earnings and revenue of $367.4 million for the year.

Shares of Arbitron fell 16 cents to close at $47.57 Tuesday.