GECs
Viacom reports record Q1 2003 results
NEW YORK: The news continues to be good for Viacom Inc. The media powerhouse, parent company of MTV and Nickelodeon, today reported record results for the first quarter ended 31 March, 2003 (January-December fiscal).
For the first quarter of 2003, Viacom revenues increased 7 per cent to a record $6.05 billion from $5.67 billion for the same quarter last year, led by 14 per cent growth in video and 13 per cent growth in cable networks segments. Operating income increased 14 per cent to a record $987 million from $866 million, led by double-digit growth in cable networks, television and video segments, a company release says.
First quarter 2003 net earnings before cumulative effect of change in accounting principle increased 26 per cent to $462 million, from $367 million in the same quarter last year. Viacom’s first quarter net earnings were $443 million versus a net loss of $1.11 billion for the same prior-year period.
The company’s EBITDA (operating income before depreciation and amortization of $241 million) in the first quarter of 2003 increased 12 per cent to a record $1.23 billion from $1.09 billion. Free cash flow for the first quarter of 2003 was $592 million versus $380 million for the same prior-year period. The increase in free cash flow was principally due to earnings growth and lower payments for interest, taxes and working capital versus the first quarter of 2002. Free cash flow reflects the Company’s net cash flow provided by operating activities of $699 million less capital expenditures of $108 million.
Sumner M. Redstone, chairman and CEO of Viacom was quoted as saying, “Viacom is off to a strong start in 2003, with high single-digit revenue increases, double-digit gains in operating income and a 26 per cent increase in net earnings in the first quarter. Additionally, we continue to generate strong levels of free cash flow, in line with our goal to convert a significant amount of our earnings into free cash flow. Our ability to deliver results to shareholders speaks to the quality and diversity of our business lines as well as the superior performance of our management team. These factors, supported by our strong balance sheet, will continue to drive our results for the rest of 2003 and beyond.”
Mel Karmazin, president and COO of Viacom was quoted in the same release as saying, “We began 2003 as we ended 2002, with record results and excellent prospects for continued growth. Once again, the strength of Viacom’s cable networks and television operations, which turned in operating income gains of 21 per cent and 13 per cent, respectively, paced the company’s growth. Our video operations also turned in an outstanding performance in the quarter with 25 per cent operating income growth. Cable networks and television drove a 6 per cent overall increase in Viacom’s first quarter advertising revenues, an outstanding accomplishment, particularly in light of the continuing economic challenges and the absence of significant contributions from our radio and outdoor businesses. As contributions from radio and outdoor grow, shareholders will benefit from the full strength of Viacom’s assets. This, along with the continued superior performance of our other segments and the prospect of a promising television upfront sales season, will keep us on track to deliver strong results for the full year.”
GECs
Zee scales syndication with global tie-ups, 350 plus channel MCN
Vertical, dubbed and audio formats boost digital reach
MUMBAI: Zee Entertainment Enterprises Ltd. is giving its content library a fresh passport. The company has stepped up its syndication push, signing global partnerships, experimenting with new-age formats and building a multi-channel network that now spans more than 350 channels.
With the newly secured MCN licence, Zee can manage, distribute and monetise content across leading digital platforms at scale, strengthening its presence in the fast-growing creator and short-form ecosystem.
To keep pace with changing viewing habits, the company is also reshaping its content into formats built for the small screen in your hand. In a tie-up with micro-drama platform Story TV, select titles are being reworked into vertical, short-duration episodes tailored for mobile-first audiences.
Beyond India, the syndication team is widening its global footprint with foreign-language dubbing and regional partnerships across Europe, Africa and Latin America, opening up fresh markets for Indian stories.
Zee is also tapping into the audio boom. It has begun licensing audio remake rights for legacy properties such as Zee Horror Show, with several more titles lined up for audio-first adaptations.
On the digital front, the company has made progress in monetising non-exclusive rights for library films, while converting select shows and movies from horizontal to vertical formats to improve discoverability on short-form platforms.
Zee Entertainment Enterprises Ltd. business head syndication Vinod Johri, said syndication has emerged as a strong growth lever for the company. He noted that the combination of a large MCN network, global partnerships and new formats such as vertical video and audio is helping build a future-ready engine that extracts more value from the content library.
Together, these moves signal a platform-agnostic approach to storytelling, as Zee repackages, localises and redistributes its IP across geographies, formats and screens, ensuring its catalogue keeps working long after the first broadcast.
