Vigorous Viacom Hikes Q2 Earnings by 21%

25 July 2003

Bullish numbers from US media giant Viacom - despite continued problems at its radio unit. Overall ad revenues for the second quarter increased by 11%, reflecting a convalescing climate for its ad-dependant outdoor advertising and cable businesses (MTV and VH1) plus broadcast network CBS.

In the quarter to June 30, the group earned $659.6 million (€573.9m; £407.52m), 21% up year-on-year. Earnings per share rose to $0.37 from $0.31, just ahead of analysts' consensus guesstimate of £0.36.

And for the year to date, net earnings reached $1.1 billion ($0.63 a share) against a loss of $567m ($0.32) in the same period a year ago, when the company took an accounting hit of $1.48 billion. Six-month revenues rose 8% to $12.47 billion.

It was a different story, though, at Viacom’s radio and entertainment divisions. Operating income from the former slipped 5% in the quarter; while the latter dived by 36% as attendance at theme parks fell and Paramount’s movies earned less from TV distribution rights.

Data sourced from: USA Today; additional content by WARC staff