| MUMBAI:
US media conglomerate Viacom has reported financial results for the first quarter
ended 31 March, 2008.
Revenues
increased 15 per cent to $3.12 billion with double-digit growth
in both the media networks and film segments.
Operating
income also grew double digits versus a year ago, up 29 per
cent to $567 million. Excluding the impact of media networks
restructuring charges in the first quarter 2007, adjusted
operating income rose 14 per cent in the first quarter of
2008. Net earnings rose by 33 per cent to $270 million.
Viacom
executive chairman Sumner M. Redstone said, "Viacom entered
2008 at an aggressive pace, delivering strong results in the
first quarter. We continue to unlock new value in our businesses
as we create innovative ways for our audience to engage with
our unparalleled entertainment brands. I am more confident
than ever that we have the right strategies and the best management
to deliver on our commitment to grow shareholder value over
time."
Viacom
president and CEO Philippe Dauman says, "Content creation
is our central mission and our ongoing investments in programming
are paying off as we see our television ratings continue to
improve. Successful new programming across our networks during
the first quarter included MTV's Randy Jackson Presents:
America's Best Dance Crew, TV Land's High School Reunion
and Bet's Iron Ring among others, which joined new
seasons of several proven audience favourites."
"Audiences
are also responding to our digital content, which is moving
beyond our own branded sites through smart distribution deals
with leading online and mobile partners. Already this year,
we took a significant step to advance our casual gaming strategy
as Nickelodeon prepares to add approximately 1,600 new online
games to its growing portfolio.
"Additionally,
our Rock Band video game is continuing its successful tour
and is emerging as a valuable long-term franchise. We expect
to further that success with the upcoming release of Rock
Band on the Wii home video game system and our launch in Europe.
"Our
motion picture operations continue to make great progress.
Paramount's Cloverfield was a solid hit in the first
quarter and we're looking forward to a strong slate of releases
during the remainder of the year, including today's premiere
of Iron Man. Additionally, we have announced an innovative
new premium service that combines the significant creative
fire power of Paramount, MGM and Lionsgate. We are reinventing
the pay television window, taking control of our content and
how it is being distributed and marketed - offering maximum
flexibility for us and for our audiences."
Media
networks revenues rose by 16 per cent to $2.02 billion, principally
driven by strong sales of the music video game Rock Band.
Worldwide
ancillary revenues grew 72 per cent in the first quarter.
Worldwide ad revenues were up eight per cent to $1.05 billion
driven by Nickelodeon, Comedy Central and TV Land. Affiliate
revenues increased by 13 per cent on a worldwide basis.
Film
revenues were up 12 per cent to $1.15 billion in the quarter
primarily due to a 22 per cent increase in home entertainment
revenues. Home entertainment growth reflects increased revenues
from third-party distribution arrangements, including $29
million in revenue recognized in connection with the conclusion
of an HD-DVD exclusivity arrangement.
Television
license fees rose by 10 per cent primarily due to an increase
in international pay TV and international syndicated television
license fees. Worldwide theatrical revenues decreased seven
per cent to $247 million due to the lower box office performance
of the films in theatrical release during the first quarter
of 2008 versus the prior year quarter.
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