Profit Rises at Viacom


NEW YORK: Net income at Viacom rose 56 percent from the year ago’s Q2, reaching $585 million, on revenues of $3.3 billion, a 2-percent gain.

Operating income grew 23 percent to $932 million. Adjusted net earnings from continuing operations attributable to Viacom rose 24 percent to $535 million.

Media Networks had a revenue growth of 5 percent, driven by an increase in affiliate fee revenues, which helped to offset a decrease in ancillary revenues. Domestic ad revenues increased 1 percent, while worldwide ad revenues were flat for the quarter.

Filmed Entertainment, meanwhile, saw revenues fall 5 percent, to $1.17 billion. The lower theatrical and TV license fee revenues were partially offset by higher ancillary revenues. Worldwide theatrical revenues were down 19 percent.

Sumner M. Redstone, executive chairman of Viacom, said, "Viacom continues its strong track record of growth and innovation, creating the world’s best entertainment content and operating more efficiently every day. Throughout the company, our leaders tirelessly build Viacom’s outstanding global properties in order to drive superior value for shareholders."

Philippe Dauman, the president and CEO of Viacom, said, "In the second quarter, Viacom continued its steady growth and delivered notably higher profitability, driven by relentless investment in our exceptional brands, and an ongoing focus on operational excellence. MTV, Nickelodeon and Comedy Central remain the number one cable destinations for their audiences, and up-and-coming brands such as VH1 and CMT are adding viewers with exciting new original shows. Driven by our popular programming, Viacom’s media networks are also forging new and lucrative opportunities in digital distribution, while continuing to create increasing value with our traditional affiliate partners. Our international media networks continue to expand in scope and profitability, with this quarter marking the launch of the first of many Paramount channels around the world. Paramount Pictures turned in outstanding bottom line results, with a targeted slate of films, a smart strategy that embraces new digital opportunities and an ongoing focus on efficiency. In the current quarter, Titanic in 3-D became a worldwide hit for the second time, and we look forward to the release of The Dictator, G.I. Joe: Retaliation and Madagascar 3: Europe’s Most Wanted later in the quarter.

"Viacom’s substantial EPS growth is the result of revenue growth, improved margins, and our $10 billion stock repurchase program, which returned $700 million in equity to shareholders in the quarter. In the second quarter we also reduced our debt costs, which further strengthened our rock-solid balance sheet."