NEW YORK (AP) - Entertainment company Viacom Inc. reported a 33 percent rise
in first-quarter earnings Friday, lifted by stronger sales of the "Rock Band"
video game.
The company, which is controlled by billionaire Sumner Redstone and owns
MTV, BET, Nickelodeon and the Paramount movie studio, earned $270 million, or 42
cents per share, in the first three months of the year, up from $203 million, or
29 cents per share, in the same period a year ago.
Excluding an investment write-down, earnings were 44 cents a share, ahead of
the 41 cents per share predicted by analysts polled by Thomson Financial. The
year-ago earnings were equivalent to 34 cents excluding a restructuring charge.
Revenues rose 15 percent to $3.12 billion from $2.72 billion.
Higher sales of "Rock Band" and a 22 percent gain in home video revenues
outweighed a 7 percent decline at the box office. Advertising revenues rose 8
percent on gains at the cable networks Nickelodeon, Comedy Central and TV Land.
Profits from media networks rose 15 percent, or 6 percent excluding the
effect of a restructuring charge a year ago.
Viacom's movie and TV production business narrowed its loss to $63 million
from $108 million, as a 12 percent gain in revenues was offset by 7 percent
higher expenses, largely from recognizing movie production costs.
Viacom split off from former sister company CBS Corp. two years ago, but
both companies are still controlled by Redstone.
Viacom confirmed its long-term forecast of low double-digit annual growth in
earnings per share from 2008 through 2010.
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