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MUMBAI: US media conglomerate Viacom has reported financial
results for the full year and fourth quarter ended 31 December,
2006.
For the year, revenues were up by 19 per cent to $11.5 billion.
Media networks revenues rose by seven per cent to $7.24 billion,
led by an increase of 11 per cent in affiliate revenues to
$2.03 billion.
Global ad revenues were up six per cent to $4.29 billion,
while ancillary revenues grew two per cent to $916 million.
Viacom executive chairman Sumner M. Redstone, said, “Viacom
delivered solid results for 2006, guided by a new management
team under the leadership of Philippe Dauman, who has moved
quickly to put the Company back on a steady path of success.
I have great confidence that we will continue to build on
the momentum of the last several months both in expanding
our digital horizons and continuing to grow in traditional
markets.”
Viacom president and CEO Philippe P. Dauman says, “We
are making significant progress financially and operationally
to ensure that we thrive in all distribution channels, including
the evolving digital marketplace. Financially, our 2006 performance
was strong, with double digit growth in revenues and operating
income and 16 per cent growth in adjusted net earnings per
share.
“During the first quarter of this year, we took decisive
steps to deploy our capital in more productive ways, including
restructuring our operations here and abroad. At the same
time, we continued to introduce popular new programming on
our linear channels, to expand our digital operations organically
and to reach innovative agreements with new digital partners.
Additionally, we continue to expand on our position as a leading
global provider of digital wireless video, and to innovate
with new online sites and experiences.”
In 2006, acquisitions contributed $125 million in incremental
revenues to media networks. The increase of 46 per cent in
film revenues to $4.38 billion in 2006 from $3.00 billion
in 2005 principally reflected the acquisition of DreamWorks
and distribution activities for DreamWorks Animation and the
DreamWorks live-action library.
This contributed $1.36 billion to 2006 revenues. Fourth Quarter
revenues of $3.59 billion grew 32 per cent from $2.72 billion
in 2005. Media Networks revenues rose by four per cent in
the quarter to $2.08 billion from $1.99 billion in 2005 led
by growth in affiliate revenues which were up 14 per cent
to $532 million. Worldwide advertising revenues rose six per
cent to $1.26 billion from $1.19 billion in 2005.
Ancillary revenues declined 15 per cent in the quarter versus
2005 to $289 million, principally due to timing and mix of
home entertainment releases. Acquisitions contributed $78
million in incremental revenues to Media Networks in the quarter.
Film revenues doubled to $1.57 billion, with the acquisition
of DreamWorks and the distribution activities for DreamWorks
Animation and the DreamWorks live-action library films contributing
revenues of $560 million.
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