Bankrate profit falls on soft ad market

By Palm Beach Business.com

NORTH PALM BEACH — Bankrate saw revenue soar during the second quarter ended June 30, while profit fell.

The company reported second quarter profit of $4.1 million, or 22 cents a share, on revenue of $40.2 million. That compares with profit of $5.2 million, or 29 cents a share, on revenue of $23.3 million for the same period a year ago.

The company cited a soft economy responsible for a soft market for display advertising.

"We are pleased with the company's performance, particularly in this economic environment, which has been so challenging for many of our largest advertisers," CEO Thomas R. Evans said. "While our display advertising has been relatively soft, the other components of our business …  are all doing very well."

For the six months, Bankrate earned $10.9 million, or 58 cents a share, on revenue of $82.7 million, compared with profit of $10.6 million, or 58 cents a share, on revenue of $45.5 million for the same period a year ago.

The company affirmed lower revenue estimates made in early July. Bankrate expects revenue to come in between $164 million to $169 million for the year, down from $167 million to $172 million.

Bankrate shares gained 3 cents to $31,59 during regular trading hours, but were down 31 cents to $31.28 in after-hours trading.