Viacom reports impressive Q3 2002 results

NEW YORK: Media conglomerate Viacom has had a happy Q3 2002. The results show that revenues increased 10 per cent to $6.3 billion from $5.7 billion and operating income increased to $1.3 billion from $194 million in the same quarter last year.

Higher revenues and operating income in every segment and a 14 per cent overall increase in advertising revenues, led by the strength of the company's broadcast and cable networks, and television and radio stations mark this quarter's results.

Television revenues increased 14 per cent and operating income rose to $314 million from $78 million; cable networks' revenues grew 13 per cent and operating income increased 41 per cent to $511 million from $363 million; and Infinity revenues increased six per cent driven primarily by 10 per cent growth in radio, and operating income rose to $322 million from $61 million.

Cable Networks (MTV Networks, including MTV, VH1, Nickelodeon/Nick at Nite, TV Land, TNN and CMT; BET; and Showtime Networks ) revenues increased 13 per cent to $1.2 billion from $1.1 billion. Revenue and operating income increases were driven by double-digit advertising revenue growth at MTV, Nickelodeon, TV Land, TNN and BET and increases in affiliate fees. The third quarter included The 2002 MTV Video Music Awards, the most-watched show in its 19-year history.

Television revenues increased to $1.8 billion from $1.6 billion. CBS and UPN Networks combined delivered 18 per cent growth in advertising revenues, led by growth in primetime of over 20 per cent. The Stations group delivered 30 per cent year-over-year advertising revenue growth due to strong sales in the automotive, leisure and media industries as well as increased political ads and the addition of KCAL- Los Angeles, which was acquired in May 2002. KCAL contributed eight per cent of Stations revenue growth for the quarter.

Syndication revenues declined primarily, reflecting the absence of contributions from the syndication of Everybody Loves Raymond in the same quarter last year, partially offset by incremental cable sales in the current quarter. Television's 2001 results were impacted by the events of 9/11, which caused lower revenues from the cancellation and rescheduling of programming and increased news coverage costs. Television EBITDA increased 23 per cent to $349 million from $283 million.

Video revenues increased 10 per cent to $1.4 billion from $1.3 billion and operating income of $80 million increased from a loss of $318 million. Domestic and international same store sales were up 7.6 per cent and 3.6 per cent respectively.

Increased investment in rental and retail initiatives resulted in the decrease in gross margin and operating income, which was also affected by higher marketing costs to initiate new consumer programs. Blockbuster ended the third quarter of 2002 with 8,246 company-owned and franchise stores, a net increase of 395 stores over the third quarter of 2001.

In the fourth quarter of 2002, the company expects to deliver in excess of 20 per cent growth in earnings per share, operating income and EBITDA versus the same quarter last year. For the full year 2003, the company expects to deliver mid-single digit revenue growth resulting in double-digit EBITDA growth and mid-teen growth in operating income and earnings per share.

Latest Reads
Viacom18 confirms the departure of Raj Nayak

In an official statement released to the media, Viacom18 confirmed the departure of Raj Nayak, the media network’s Chief Operating Officer.

Television TV Channels GECs
Sony Pictures Networks India gears up for the India tour of Australia with engaging programming initiatives

For the year ending high-octane cricket series between India and Australia, Sony Pictures Networks India (SPN), will be undertaking several initiatives to enhance the viewing experience and increase engagement with cricket enthusiasts across the nation.

Television TV Channels Sports
Sony Entertainment Television appoints Sagnik Mukherjee as AVP marketing

Sagnik Mukherjee is set to join Sony Entertainment Television as associate vice president marketing, a source close to the development confirmed to

Television TV Channels People
Viacom18 COO Raj Nayak quits

Colors' Big Boss has quit, according to media reports. We are talking about Viacom18 COO Raj Nayak, who is the brain behind the most popular reality show Big Boss.

Television TV Channels GECs
Monuments Turn Red, As National Geographic Raises an Alarm for Planet Conservation

Glaciers are melting, sea levels are rising, pollution in various parts of the world is at its peak, and tonnes of plastic waste is in the oceans.

Television TV Channels English Entertainment
Network 18's Joy Chakraborthy steps down

Forbes CEO and Network 18 President(Revenue) Joy Chakraborthy has stepped down from his role, according to media reports.

Television TV Channels News Broadcasting
Sony BBC Earth hosts the extraordinary Natural History Producer and Global Storyteller, Jonny Keeling, in India

Sony BBC Earth, India’s No. 1 factual entertainment channel and home to the most iconic and premium content, continues to deliver to its promise of making the viewers ‘feel alive’.

Television TV Channels Factual @ Discovery
‘Ab Jungle meinhoga Dangal’ with the Hindi Television Premiere of Jumanji: Welcome to the Jungleon November 24th at 8pm only on &pictures

Ever wonder how it feels to be inside a game and play the character you choose? In the brand-new adventure Jumanji: Welcome to the Jungle, the tables are turned as four teenagers in detention are sucked into the world of Jumanji.

Television TV Channels Movie Channels
Broadcasters see regional adex space growing

Now that the Hindi fervour has died down, broadcasters and advertisers have latched on to the regional segment. It's no wonder that the adex in the space is expected to grow as well. According to the global ad growth forecast of GroupM, India’s adex is expected to grow at 14.2 per cent compared to...

Television TV Channels Regional

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories