On the back of a strong performance from its filmed entertainment and media networks division,Viacom has reported a 27% increase in second quarter net profits. The company’s total sales for the quarter ending September 30, 2007 were $3.27 billion, compared with $2.6 billion for Q3 2006, while net profit rose to $449.9 million, up from $355.2 million last year.
Revenues from filmed entertainment were up by 57% to $1.3 billion in the third quarter of 2007, driven primarily by a $278 million increase in theatrical revenues to $490 million. Higher theatrical revenues were led by the July 3, 2007 release of Transformers, and a 39% increase in home entertainment revenues to $457 million, principally reflecting a year-on-year increase in titles released. Higher revenues were partially offset by increased film amortization, as well as higher print and advertising costs, including expenses related to Transformers.
Viacom reported an operating income of $815 million in the third quarter, which grew by 25% compared to Q3 2006. Operating income from the media networks and filmed entertainment division grew to $19 million and $80 million, respectively.
Diluted EPS from continuing operations increased by 34% to reach $0.67, driven by the incremental $95 million in net earnings from continuing operations and lower weighted average shares outstanding. It also includes a $0.02 benefit from the net impact of discrete tax credits, which is partially offset by the media networks restructuring charges.
Viacom competitor Time Warner has reported an increase of 6% in revenues for the quarter ending September 30, 2007, and increases in net revenues and EPS of 113.8% and 27.3%, respectively, compared to the corresponding quarter of last year.
Source: ComputerWire daily updates