STOCKHOLM, SWEDEN: Cision's North American revenue grew 8% organically in the second quarter of 2012 to $29.5 million, compared with the previous year. Operating profit in North America was up 18.4% to $5.5 million.
US revenue increased 11% organically in Q2, the same growth as the previous two three-month periods.
In the first half of 2012, North American revenue increased 7% organically to $57.5 million, compared with the previous year. Operating profit grew 19.4% to $11 million in the first half.
Globally, Cision AB's revenue grew 6% organically in the second quarter to $37.4 million, compared with the previous year. Operating profit was down 9% to $5.1 million.
Cision's global revenue increased 5% organically in the first half to $72.7 million. Operating profit was up 26% to $10.2 million. Organic growth represents change in revenue without measuring the impact of acquisitions or disposals.
“In spite of having had an eventful second quarter, our steadfast focus on transformation and growth again paid off,” Cision CEO Hans Gieskes said in a statement. “Apart from these positive growth trends, the two key events in the quarter were resolving a legal threat issue in the US and the divestment of our US print monitoring business.”
In June, BurrellesLuce bought Cision's US print monitoring operations for $2 million. Cision had seen a drop in demand for and revenue from print monitoring, and the company conducted the sale to focus on software and other investments necessary for online monitoring, research, and analysis. The deal and transition of customers are expected to be complete by the fourth quarter of this year.
The sale resulted in a transfer of 150 staff members and cost $1.8 million, but those costs were offset by a gain of more than $2 million from the deal. Following the sale, the company said it planned to expand some platforms, including influencer identification, media measurement, and analysis.
Also in June, Cision and Dow Jones & Co. settled a claim that the PR software and services provider reproduced Dow Jones' news content without authorization. The companies agreed to settle the claims without litigation, but did not specify the terms of the deal.
Cision said the costs of the settlement, reported in the second-quarter results, were $6.4 million, including the confidential settlement amount.
As a result of the settlement, Cision will no longer redistribute full-text articles from Dow Jones, instead referring subscribers seeking them directly to the publisher.
The company also underwent a leadership change this year when former Cision North America CEO Joe Bernardo stepped down on March 1.
All figures were converted to US dollars from Swedish Krona using the XE currency converter.