Viacom Sees Double-Digit Growth for Q4

NEW YORK: Fourth-quarter revenues at Viacom were up 22 percent to $4 billion, while profit gained 33 percent to $614 million.

Media Networks contributed $2.29 billion in revenues, up 8 percent. Worldwide and domestic advertising were up 7 percent in the quarter. Filmed Entertainment posted revenues of $1.79 billion, an increase of 46 percent, driven by the strong performance of Transformers: Dark of the Moon in theatrical and home entertainment market.

Quarterly adjusted operating income of $1.06 billion grew 27 percent over the prior year’s result of $837 million, driven by a 10-percent increase in the Media Networks segment and a triple-digit gain (256 percent) in the Filmed Entertainment segment.

Sumner M. Redstone, the executive chairman of Viacom, said, "Viacom’s performance in fiscal 2011 once again illustrates the value of our focused strategy and strong leadership. Viacom’s powerful brands are enhanced by operational and financial discipline, which continues to drive our results and build value for shareholders."

Philippe Dauman, the president and CEO of Viacom, added, "2011 was an outstanding year, highlighted by significant creative milestones, strong topline growth and expanded profitability across every division of Viacom. Creatively we are at the top of our game, powered by unique audience insights and connections, coupled with consistent investment in innovative programming at our marquee media networks, including MTV, Nickelodeon, Comedy Central and BET. Paramount Pictures is benefiting from a disciplined franchise-centric approach that has produced an unprecedented number of hits in the domestic and international box office.

"We enter a new fiscal year with a proven track record of managing our operations effectively in every economic environment. Our financial position is as strong as it has ever been, which allows us to continue to invest in the growth of our businesses, including new branded television networks in the U.S. and internationally, and Paramount’s recently launched animation label. At the same time, we continue to deliver greater returns to shareholders. In 2011, our ability to generate strong free cash flow allowed us to not only increase our dividend, but also to repurchase $2.5 billion in Viacom shares. Demonstrating our confidence in Viacom’s long-term outlook, the Board approved today a significant increase in our buyback program to $10 billion."