Global Traffic Network 2Q earnings fall 20 percent

Global Traffic Network Inc., a provider of custom news and traffic to TV and radio stations outside the U.S., on Monday posted a 20 percent decline in its fiscal second-quarter earnings as a stronger U.S. dollar hampered revenue growth.

The New York-based company reported net income of $890,000, or 5 cents per share, for the quarter ended Dec. 31, compared with $1.1 million, or 6 cents, in the same period a year earlier. Revenue rose 5.8 percent to $13.9 million from $13.2 million.

Earnings were in line with the average projection by analysts polled by Thomson Reuters, but revenue fell short of the $14.3 million expected.

Excluding the effect of the U.S. dollar, revenue in Australia would have risen by 27 percent and 46 percent in Canada from the prior year. Australia comprises 77 percent of Global Traffic's total revenue and Canada takes up 15 percent. The company just began U.K. operations.

Global Traffic Network said sales growth in January has slowed from the first two quarters, excluding the effect of currency translation. If the trend continues, the company said it expects to post a lower net income and adjusted operating income for the fiscal third quarter.

Analysts expect the company to report a penny per share profit in the third quarter.

Global Traffic provides customized reports for free to stations. It receives airtime in return, which the company sells to advertisers.

Shares of Global Traffic fell 3 cents to $5.40 in midday trading.