Neustar’s stock falls amidst concerns over major contract
- January 30, 2014
Sterling-based Neustar’s stock declined by almost 20 percent on Thursday amid concerns about the future of the company’s number portability administrator contract. The contract accounts for almost half of Neustar’s revenues (48 percent).
The drop in stock price came after Neustar announced Wednesday a revised bid for a contract starting July 2015 had been rejected by North American Portability Management (NAPM) LLC, the organization that awards the contract. Neustar had submitted an initial proposal last April.
NAPM has not announced a decision on the contract.
Neustar has held the number portability contract since 1996. Number portability means consumers essentially own their telephone numbers and can take them anywhere, no matter where they live or what telephone carrier they use.
On Wednesday, Neustar also released its financial results. For 2013, the company’s revenue increased by 8 percent to $902 million. Net income increased 4 percent to $162.8 million, or $2.46 per share. Revenue for the fourth quarter totaled $237.6 million, an 11 percent increase from $214.2 million in 2012. Fourth-quarter net income increased 1 percent to 38.1 million, or 59 cents per share.