Viacom Profit Climbs in Q4

NEW YORK: Net profit at Viacom increased from the year-ago’s $173 million to $694 million in the fourth quarter, on revenues that were down 3 percent to $4.1 billion.

The Media Networks revenues fell 6 percent to $2.33 billion, with a 37-percent decline in ancillary revenues to $290 million and a 3-percent fall in worldwide advertising revenues to $1.3 billion. However, worldwide affiliate revenues grew 11 percent to $741 million. Filmed entertainment revenues declined 1 percent to $1.79 billion primarily due to a 73-percent year-over-year decrease in theatrical revenues to $93 million, but the segment saw a 12-percent hike in worldwide home entertainment revenues to $1.15 billion and worldwide television license fees grew 27 percent to $445 million.

In the year, meanwhile, revenues fell 7 percent to $13.62 billion, while net profit increased from $1.25 billion to $1.6 billion. Media Networks revenues were down 5 percent to $8.29 billion due to lower ancillary and advertising revenues. Worldwide affiliate revenues, meanwhile, increased 11 percent to $2.9 billion in 2009. Filmed Entertainment revenues declined 9 percent to $5.48 billion, including a 23-percent decrease in worldwide theatrical revenues to $1.32 billion and an 8-percent fall in worldwide home entertainment revenues to $2.5 billion. Higher pay TV fees helped fuel a 4 percent increase in television license fees to $1.38 billion.

Announcing the results, Sumner M. Redstone, the executive chairman of Viacom, noted: "Viacom’s results over the past year have been extraordinary and illustrate the value of a well planned strategy and execution. Despite the economic challenges, we performed extremely well across our media networks and motion picture operations. As a result of the quality of our operations and wealth of creative talent throughout the company, we are well positioned for success not only today but long into the future."

Philippe Dauman, president and CEO of Viacom, added: "Our disciplined and content-focused strategy helped Viacom close out the year with a stronger balance sheet, a streamlined cost structure and a reinvigorated creative mandate across the company. Despite a global recession that impacted all aspects of our business, the multiple revenue streams of our cable networks helped temper the impact of an industry-wide downturn in advertising and retail, and also allowed us to continue to invest in new programming to build our brands. The resurgence of BET and MTV’s recent ratings gains are strong examples of the relevance our brands have with their target audiences. Paramount Pictures significantly boosted its profitability in 2009 as the studio’s strategy of producing a smaller slate of films, anchored by franchises, began to pick up momentum. We also were pleased to see renewed consumer demand for our new DVD and Blu-ray releases in the fourth quarter."