Ad Gains Boost Viacom Profit

NEW YORK: Helped in part by an 11-percent gain in its U.S. advertising revenues, Viacom’s net profit for the second quarter gained 53 percent to $376 million, on revenues that were up by 20 percent to $3.27 billion.

"Viacom’s proven creative firepower and disciplined financial management are fueling our profitability and allowing us to deliver increasing value to our shareholders," said Sumner M. Redstone, Viacom’s executive chairman.

"This was an outstanding quarter, reflecting our continued operating momentum," added Philippe Dauman, the president and CEO of Viacom. "Our ability to translate industry-leading research and creative ingenuity into hit programming makes our branded networks a gateway to some of the most highly valued audiences around the globe. We attracted new advertisers in the quarter and expanded the reach of our content onto new distribution platforms. Our networks aired top-rated shows for nearly every demographic. Paramount Pictures delivered outstanding results this past quarter as it benefited from a strong slate of films in theaters as well as home entertainment releases."

Media Networks revenues were up by 11 percent $2.1 billion, with ad revenues up 12 percent overall. Affiliate revenues gained 9 percent to $851 million and ancillary revenues gained 10 percent to $155 million. Operating income for the segment was $806 million, a 13-percent gain.

Filmed Entertainment revenues increased 38 percent to $1.23 billion due principally to a 50-percent bump in theatrical revenues to $401 million and a 38-percent gain in home entertainment to $410 million. Television license fees grew by 30 percent to $336 million, due to higher network television and syndication fees. Ancillary revenues improved 25 percent to $79 million. The segment recovered from its $83 million year-ago loss to post an operating income of $39 million.