| MUMBAI:
US media conglomerate Viacom's fourth quarter profits fell by 69 per cent to $173
million on costs to cut jobs and a write-down on the value of some assets.
Revenues
in the fourth quarter of 2008 were flat year-over-year at $4.24 billion. Operating
income was down 51 per cent to $475 million, including the impact of $454 million
in restructuring and other charges taken in the quarter. Full
year revenues grew by nine per cent to $14.63 billion with filmed entertainment
up 10 per cent and media networks up eight per cent. Profit for the year was $1.25
billion, a decline of 25 per cent. Viacom
executive chairman Sumner M. Redstone says, "There is no doubt that global
economic conditions are difficult right now. Having worked through turbulent times
before, I know that it is in such times that companies with strong, resilient
assets distinguish themselves. With enduring brands and a proven leadership team,
Viacom is well prepared to manage through this environment and thrive over the
long term." Viacom
president and CEO Philippe Dauman says, "Our fourth quarter results reflect
the realities of a challenging economy. The broad marketplace conditions weighed
on our advertising, home entertainment and consumer products businesses. That
was offset, however, by solid growth in our affiliate and theatrical revenues,
both up double digits. "Ratings
trends at several of our core networks are improving as new programming gains
traction and we are looking forward to a promising motion picture slate anchored
by three upcoming tentpoles, J.J. Abrams' Star Trek, Transformers 2:
Revenge of the Fallen and G.I. Joe. "While
our strategy remains firmly focused on building our brands for long-term success,
we also have great confidence in our ability to execute successfully today. We
acted early and decisively to prepare for the rapid decline in economic conditions.
Without sacrificing the creation of great content, we aggressively managed our
cost structure, which significantly boosted cash flow and further strengthened
our balance sheet. "The
restructuring actions we took late last year will result in approximately $200
million in savings this year. While it is difficult to know how long these conditions
will persist, our actions have positioned us very well to seize the opportunities
that will arise as the economy recovers." Full
Year 2008 revenues for media networks rose by eight per cent to $8.76 billion,
principally driven by a 32 per cent increase in worldwide ancillary revenues to
$1.41 billion. This growth reflects increased sales of the Rock Band video game,
which were partially offset by revenue declines in home entertainment and consumer
products. Worldwide
affiliate revenues increased 12 per cent to $2.62 billion and worldwide advertising
revenues grew 1 per cent to $4.72 billion. Domestic advertising revenues were
flat year-over-year reflecting softness in the overall advertising market, particularly
during the second-half of the year. Filmed Entertainment revenues grew 10 per
cent to $6.03 billion led by a 17 per cent increase in theatrical revenues to
$1.71 billion and a nine per cent rise in home entertainment revenues to $2.72
billion. The
growth in theatrical revenues reflected a more favorable mix of films versus the
prior year, including Indiana Jones and the Kingdom of the Crystal Skull,
Marvel's Iron Man and DreamWorks Animation's Kung Fu Panda and Madagascar
2: Escape to Africa. Home entertainment revenue growth was driven primarily
by higher third-party distribution revenues and the DVD release of Iron Man.
Worldwide television license fees increased by three per cent to $1.33 billion,
primarily due to an increase in pay TV and syndicated television in international
markets. | 
