News Broadcasting
Viacom, CBS deliver mixed results
MUMBAI: Viacom and CBS Corporation have announced their first financial results since the split of US media conglomerate Viacom.
This earnings report deliver mixed results, because it’s the first one after the separation; there are historical earnings, pro forma earnings, discontinued operations and a special dividend paid to CBS.
For the fourth quarter of 2005, Viacom’s net earnings decreased to $130 million from $406 million, on revenues of $2.72 billion, up nine per cent from the previous year. Cable network revenues were up 16 per cent, but entertainment revenues fell five per cent.
Viacom’s full-year revenues rose 18 per cent to $9.61 billion, with 18 per cent growth in the cable networks segment and 19 percent growth in the entertainment segment. Advertisement revenues rose 18 per cent to $3.96 billion.
While media reports quoted Viacom chief executive Tom Freston saying the company still has “a good feeling” about the first quarter at its cable networks. He cautioned, however, that many advertisers are making their buys of ad time at the last minute, making it difficult to be firm about projections, and that it is coming up against difficult comparisons with last year’s first quarter, when ad sales soared 26%.
Net earnings from continuing operations decreased to $1.3 billion from $1.39 billion. For the year it lost $94 million from entertainment due to movie releases not performing as well as expected and charges for severance expense of $23 million and theatrical inventory write-downs of $32 million.
Viacom executive chairman Sumner M. Redstone said, “The strong growth and performance of the exceptional businesses that comprise new Viacom in 2005 not only validates the rationale for the separation of the company, but also highlights the outstanding potential of this great new company.”
“New Viacom began its life as the world’s leading pure-play content business and under the leadership of Tom Freston and his experienced team, is already moving ahead rapidly to fulfill its core commitment to create great content for every imaginable platform while delivering outstanding returns for shareholders.”
CBS reported a loss of $9.1 billion in the fourth quarter on charges to write down the value of its radio and television businesses. Full-year revenues stayed flat at $14.54 billion. Revenues reflected a two per cent rise in ad revenues led by growth in the television, tadio and outdoor segments offset by a decline in television license fees.
CBS president and CEO Leslie Moonves said, “I am very pleased that the separation is completed. Since the split, we announced a 14 percent increase in our dividend to demonstrate our confidence in our ability to generate strong free cash flow, a measure which showed double-digit growth for us during 2005.”
CBS has been active in recent months, sealing a $325 million deal last November for a two-year-old college sports network called CSTV Networks Inc., even before its split with Viacom was formalized.
Last month it also raised its quarterly dividend from 14 cents to 16 cents, a jump of 14 percent. As it split from Viacom, CBS has said it intends to return capital to investors with dividends and other means, as its businesses generate significant amounts of cash. CBS also said it intended to sell its Paramount Parks business.
However, Moonves indicated on a conference call with investors that it was unlikely that the company would make a run at the latest media company to go on the block, Spanish-language broadcaster Univision Communications. Given CBS’s already large footprint in radio and TV, Moonves said the regulatory hurdles to such a potential deal would be “extreme.”
CBS is also working to shore up its radio business, which suffered another loss at the beginning of this year when the ultra-popular shock jock Howard Stern jumped to Sirius Satellite Radio. Moonves acknowledged that its radio unit has had several “challenges” including the loss of Stern, but he said the business was turning around, quoting media reports.
News Broadcasting
GenNext takes charge as Network18 reshuffles leadership
With Avinash Kaul bowing out, Network18 hands reins to younger leaders, streamlines operations, and pushes data-driven growth across TV, digital and regional markets
MUMBAI: Network18 is redrawing its leadership map just as a long-time lieutenant bows out. Avinash Kaul, a central figure in the broadcaster’s rise since 2014, is leaving after 12 years to pursue “professional and personal goals”, triggering a broad-based reshuffle that puts a younger cohort directly under the top brass.
Kaul joined at a pivotal moment during the company’s transition and went on to scale the television business, combining strategic nous with data-led decision-making and a sharp read of the news landscape. “Avinash has been an integral part of the Network18 story,” the company said, thanking him for his leadership of the broadcast business and wishing him the best for the future.
In his wake, Network18 is betting on what it calls a “young and restless” leadership bench. “The team has taken charge and proved its mettle in quite adverse circumstances,” the note said, adding that “GenNext has seamlessly stepped in as we continue to outperform our peers.”
Operationally, the structure is being flattened. Smriti Mehra, S Shivakumar and Mitul Sangani will work directly with the top leadership, as they did in the fourth quarter. Ganesh Iyer and Abhinay Chauhan continue in their existing roles, while younger executives are being handed wider mandates across social, digital, connected TV and linear.
The reporting lines are being tightened to drive revenue and product momentum. Prabhat Chatterjee, business head–Forbes, and Arun Thapar, president–content and communication for AETN-18, will report to Smriti Mehra, alongside Mallika Nath Handa, who will lead special projects spanning new shows and non-linear properties. Jayesh Gokalgandhi, CFO for AETN-18, will report to Ramesh Damani.
Mitul Sangani will oversee expansion in Hindi and regional markets, with Sidharth Newatia, CRO–ILC, focusing on reach and revenue growth, particularly in tier-II and III markets. Pankaj Soni, head of marketing–ILC, will also report to Sangani while working functionally with Ganesh Iyer.
The group is also consolidating its branded content play. Moneycontrol’s branded content business will be folded into News18 Studio, with Don Zarrar moving to work with Shivakumar while continuing to lead existing studio and Focus teams.
International and platform growth are being bundled together. Pranav Bakshi takes on additional charge of the international business alongside connected TV and social platforms, with Naveen Mathur, who leads revenue management for the international unit, reporting to him. Bakshi continues to report to Puneet Singhvi.
On the technology and operations side, Rajesh Sharma, head of broadcast technology and IT; Rahul Singh, head of events and technical operations; and Bhupender Bhardwaj, head of IT security, will now report to Singhvi. Darshil Parekh, head of sales strategy, planning and operations, will work directly with Ramesh Damani and the top leadership, with Stanley Cyril, who manages digital sales operations, reporting to him.
Data is being pushed to the centre of decision-making. Jitamitra Mohanty, who leads research and analytics, will now work with Santosh Menon to turn audience data into “actionable insights that drive content strategy, product innovation and sustainable viewership growth”.
The message is clear: fewer layers, faster calls, sharper bets. With Kaul’s exit closing one chapter, Network18 is handing the wheel to a younger crew and doubling down on scale across screens. The race, it signals, will be run at full tilt.
