Viacom reported higher first-quarter profits and strong sales of its “Rock Band” video game.
Net earnings rose 33% to $270 million, or 42 cents a share, from $203 million, or 22 cents a share, a year ago, the company said Friday.
Revenues rose 15% to $3.1 billion. Excluding the impact of restructuring charges at MTV Networks a year ago, adjusted operating income rose 14% in the first quarter.
“Content creation is our central mission and our ongoing investments in programming are paying off as we see our television ratings continue to improve, said Viacom CEO Philippe Dauman, citing MTV’s “Randy Jackson Presents: America’s Best Dance Crew,” TV Land’s “High School Reunion” and BET’s “Iron Ring.”
“Audiences are also responding to our digital content, which is moving beyond our own branded sites through smart distribution deals with leading online and mobile partners,” Mr. Dauman said in a statement.
Viacom’s Media Networks division, which includes MTV, VH1, Comedy Central and BET, reported a 15% increase in operating income to $694 million. The company said 9% of that increase was due to the year-ago restructuring charge.
Revenue for the media networks division was up 16%. The increase was principally driven by “Rock Band” sales, the company said. Worldwide advertising revenues were up 8% to $1.05 billion, led by Nickelodeon, Comedy Central and TV Land.
The company said it expects low double-digital annual growth in diluted earnings per share from continuing operations.
“Viacom entered 2008 at an aggressive pace, delivering strong results in the first quarter. We continue to unlock new value in our businesses as we create innovative ways for our audience to engage with our unparalleled entertainment brands,” said Sumner Redstone, executive chairman of Viacom. “I am more confident than ever that we have the right strategies and the best management to deliver on our commitment to grow shareholder value over time.”
(Editor: Jensen)