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Viacom’s bottom line results for the first quarter were equally
robust, says the company, with an operating income growth of 20%
and, excluding the tax benefit, a gain in net earnings of nearly
30%. The company says it is on track to deliver full year 2004 revenue
growth of five to seven per cent, operating income growth of 12
per cent to 14 per cent and earnings per share growth of 13 per
cent to 15 per cent.
For the quarter, Viacom's Cable Networks revenues (which includes
MTV, VH1, Nickelodeon, Spike TV, CMT, Comedy Central, BET and Showtime
Networks) increased 21 per cent to $1.4 billion from $1.2 billion
and operating
income increased 24 per cent to $536 million from $432 million.
Comedy Central, which was acquired in May
2003, contributed nine per cent to Cable Networks' revenue growth
and 10 per cent to operating income growth for the quarter, claims
the company.
The revenue increases were driven by higher advertising, affiliate
fees and ancillary revenues. Cable Networks' advertising revenues
grew 33 per cent led by growth of 35 per cent at MTV Networks and
16 per cent at BET.
The company's Television (CBS and UPN Television Networks and Stations;
Television Production and Syndication) revenues increased 18 per
cent to $2.3 billion from $1.9 billion, and operating income increased
38 per cent to $336 million from $243 million. CBS and UPN Networks,
says the company, together delivered 26 per cent higher advertising
revenues principally driven by the telecast of Super Bowl XXXVIII,
the NCAA Men’s Basketball Championship and the strength of CBS primetime.
The Stations group advertising revenues increased 14 per cent,
benefiting from the major sports events on CBS during the first
quarter, higher advertising revenues from key industries (automotive,
leisure and media, and transportation) as well as higher political
spending.
For the quarter, the company's radio revenues increased three per
cent to $455 million from $444 million and operating income increased
five per cent to $199 million from $191 million.
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