Double-Digit Gains for Viacom

NEW YORK: Viacom’s third-quarter revenues, boosted by growth in affiliate, advertising and television-license revenues, rose 15 percent to $3.8 billion, with president and CEO Philippe Dauman noting that the company "is in the best financial shape in its history."

The company reported an operating profit of $981 million, up 20.2 percent, and a net profit of $574 million, reflecting a 36.6-percent gain.

“The breadth of hit programming found across Viacom’s media network portfolio continues to expand with top-rated shows and tentpole events on MTV, Nickelodeon, Comedy Central, BET and TV Land, as well as many of our international networks, all of which contributed to strong advertising growth and a robust advertising upfront performance," Dauman said. "We are strengthening our global entertainment brands and expanding our reach through new international and digital distribution and bringing our audiences the content they want on new platforms. Paramount Pictures is the first studio ever to deliver a record six consecutive $100 million-plus domestic box office movies and it was the first studio to cross the $1 billion domestic box office threshold for the fifth year in a row. In addition to our creative and operational success, Viacom is in the best financial shape in its history and has furthered its commitment to return cash to our shareholders with the recent increase in our dividend and the acceleration of our stock buyback program.”

At the Media Networks, revenues showed a 16-percent year-on-year gain to reach $2.39 billion. Worldwide advertising revenues rose by 14 percent to $1.28 billion and worldwide affiliate revenues increased 19 percent to $971 million, thanks to higher digital distribution revenues as well as rate increases. Worldwide ancillary revenues showed a 13-percent boost to $145 million. Operating income in this segment rose 27 percent to top $1 billion.

Higher television license fees and home entertainment revenues helped lift Filmed Entertainment segment revenues by 13 percent to $1.41 billion; worldwide television license revenues were up 36 percent in the quarter to $416 million, and home-entertainment revenues increased 33 percent to $331 million. Ancillary revenues rose 57 percent to $72 million. However, theatrical revenues fell 9 percent to $588 million. Operating income in this segment fell 29 percent to $49 million.