Viacom lowers forecast for full-year profit

NEW YORK: This is bad news for US networks who strongly rely on local advertising as a source of revenue. Media conglomerate Viacom has decided to reduce its full-year profit and revenue forecast because local advertising sales have not been picking up as rapidly as had been expected.

The alert is being seen as a signal that the US economy might not be rebounding as rapidly as the stock markets have anticipated. Reports indicate that Viacom gets around half its revenue from businesses that rely on advertising sales.

Last year, it had $24.6 billion in revenue. A Herald Tribune report estimates that about $5.5 billion, or 22 per cent of that total, came from local advertising sales. Worsening the situation is the fact that the company generated nearly 46 per cent of its revenue from advertising in the first half of this year.

Viacom expects revenue and profit growth to be in the mid- to high-single digits. The announcement comes just two months after the company's CEO Sumner Redstone raised his projections for this year to high single-digit growth in revenue and double-digit growth in operating income.

However it is expected that 2004 will be fairly healthy for advertising, with the Athens Olympics and the presidential elections. At this time, spending goes disproportionately to local radio and television, reports indicate.

Latest Reads
Aaj Tak HD hits airwaves, available on Tata Sky

India’s leading news broadcaster Aaj Tak has announced the launch of country’s first Hindi HD news channel - Aaj Tak HD.

Television TV Channels News Broadcasting
Uday Shankar's meteoric rise from Star India to Disney APAC

The man running India's largest media company - Star India-  has made it to the top in the Asia Pacific region at probably the world’s most admired entertainment company - Disney. Uday Shankar, who once was a reporter with The Times of India, and then went on to successfully lead news channels such...

Television TV Channels GECs
DreamWorks to launch Fight Sports and Kids+ channels

DreamWorks Channel, a Southeast Asian pay television network that is owned and operated by DreamWorks Animation International TV, a subsidiary of NBCUniversal, which is a division of Comcast, has set the ball rolling to launch two new channels - Fight Sports and Kids+ Asia. It has started the...

Television TV Channels Kids
4 Star and 3 Zeel channels most watched across genres

Four channels from the Star India network, three channels from Zee Entertainment Enterprises Ltd (Zeel) and one channel each from Sony Pictures Network India (SPN), the Sun TV Network, and Viacom 18 comprised the list of the top 10 channels across genres for week 49 of 2018 (Saturday, 1 December to...

Television TV Channels Viewership
Disney hoicks Uday Shankar to top job at Fox-Disney combined unit for APAC

MUMBAI - As part of the integration planning for the pending acquisition of Twenty-First Century Fox, Inc. (“21st Century Fox”-NASDAQ: FOXA, FOX), the Direct-to-Consumer & International (DTCI) segment of The Walt Disney Company (NYSE: DIS) today announced plans for the strategic alignment of...

Television TV Channels News Broadcasting
Discovery strikes agreement with European Tour to expand GOLFTV portfolio and establish the ‘digital home of golf

Discovery and the European Tour have announced a new partnership that will see GOLFTV continue to expand its portfolio and move towards becoming the established ‘digital home of golf’ for fans around the world.

Television TV Channels Factual @ Discovery

CNN and Cartoon Network won eight honours – also known as “Goddess of Creativity” wins – at the Asian Academy Creative Awards on December 6, the region's version of the International Emmy Awards.

Television TV Channels Kids
Uncover the enthralling journey of the most notorious drug lord on HISTORY TV18 HD’s ‘The Rise & Fall of Pablo Escobar’

Pablo Escobar’s belief that “Life is full of surprises, some good, some not so good.” forms the basis for a thrillingbiography of the world’s most infamous drug lord.

Television TV Channels Factual @ Discovery

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories