Viacom Reports Q4 Decline in Profit

Feb 22, 2006  •  Post A Comment

Viacom said Wednesday that it posted a 67 percent decline in fourth-quarter profit as charges related to the split of the company, layoffs and film write-downs weighed on the overall results.

The company, which now consists of cable networks and the Paramount Pictures film studio, reported a fourth-quarter profit of $129.5 million, compared with a year-earlier profit of $393.2 million. Revenue rose 9 percent to $2.7 billion. The numbers reflect Viacom’s results had it been made up of the cable and film studio assets for the entire year.

For the year, Viacom’s profit surged to $1.3 billion from a year-earlier $293.7 million, while revenue advanced 18 percent to $9.6 billion.

Much of the company’s growth came from the cable networks operation, which includes MTV Networks and BET. For the fourth quarter revenue rose 16 percent to nearly $2 billion, fueled by a 15 percent jump in advertising revenue and a 13 percent increase in affiliate-fee revenue.