Viacom Boosts Q2 Revenues, Profit

NEW YORK, August 10:
Viacom’s revenues for the second quarter of this year were up 24 percent to
$2.85 billion, led in part by the acquisition of DreamWorks, delivering a
profit of $437.3 million, also up 24 percent on the year-ago period.

"Viacom's solid
second quarter results prove that the enduring strengths of our content and our
segment leading brands continue to resonate with consumers and
advertisers," said Sumner M. Redstone, the executive chairman of Viacom.
"We have a great foundation from which to take full advantage of the
growth opportunities we see ahead by not only expanding on our traditional
businesses, but also by profitably integrating new platforms with significant
future growth potential.”

Tom Freston, the president
and CEO of Viacom, added, “Despite a challenging cable advertising environment,
we once again outperformed the market, driving success with our best-in-class
brands and unmatched connections with our audiences. In addition, our
international operations improved over last quarter, and while we still have a
lot of work to do, particularly in Europe, we remain focused on building on our
progress and realizing the potential of this business. As our markets and
audience continue to evolve, our business will evolve with them. To that end,
digital traffic continues to grow significantly across all of our broadband
properties and we believe MTV Networks is now the world's largest provider of
video content to the mobile phone. In addition, our digital acquisitions, such
as Xfire, Gametrailers and Neopets, are operating very well, and we are
thrilled about our new distribution partnership with Google. And we announced
the acquisition of Atom Entertainment, a leader in casual gaming and short-form
video that will extend our connection with some of our key audiences. Looking
ahead, we are confident that continued execution of our digital strategy, which
is heavily focused on organic growth, will ensure the company remains well
positioned in a changing marketplace."

Cable networks segment
revenues increased 8 percent to $1.75 billion, with U.S. advertising revenues
up 10 percent to $969.1 million, and affiliate fees up 11 percent to $501.8
million. International revenues were up 4 percent in the quarter, but advertising
revenues declined 2 percent, versus a 13 percent decline last year.
International affiliate revenues were up 13 percent. Operating income at the
cable networks rose 12 percent to $710.3 million.

Entertainment revenues were
up 59 percent in the quarter to $1.1 billion, principally attributable to
DreamWorks. The acquisition of DreamWorks and the commencement of distribution
activities for DreamWorks Animation and the DreamWorks live-action library contributed
$345.1 million. Home entertainment revenues increased 2 percent to $402.7
million, and television license fees were up 173 percent to $326.9 million.
Theatrical revenues also rose, by 108 percent, to $325 million. The
entertainment segment emerged from a $23 million loss to post a profit of $6.4
million.