Viacom's Profit Beats Expectations

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Viacom (VIA) delivered a solid earnings report, beating expectations on the bottom line.

EPS came in at $0.69, up 25% year over year, blowing out the Street’s estimate of $0.57.

Revenue was $3.32 billion, down 3% from $3.4 billion a year ago, but in line with estimates of $3.3 billion from analysts.

Revenue from the Media Networks was flat, as revenue from affliates — up 10% worldwide — was offset by a drop in advertising — down 5% worldwide.

Other points mentioned in the release:

  • Lower home entertainment and consumer products revenues, resulting in a 3% decrease in worldwide ancillary revenues.
  • Filmed Entertainment revenues were down 6% year-over-year to $1.22 billion as weakness in home entertainment sales more than offset growth in theatrical revenues.
  • Transformers, G.I. Joe, fuelled a 16% increase in worldwide theatrical revenues.
  • Worldwide home entertainment revenues decreased 21%, which primarily reflects a difficult comparison with the strong performance of the DVD release of Iron Man in the third quarter of 2008.
  • Television licence fees were down 8% in the quarter.

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