Viacom in black 1st year since ’87

Powered by its MTV Networks and Cable Television divisions, Viacom Inc. reported full-year net profits from operations for the first time since Sumner Redstone’s National Amusements acquired the company in 1987.

Net earnings were $ 49 million (41 cents per share) for the year ended Dec. 31 vs. a net loss of $ 50 million (44 cents) in 1991. Before extraordinary items , net earnings totaled $ 66 million (55 cents), vs. a net loss of $ 47 million ( 41 cents) in 1991.

’92 was the year

“1992 was the year when the growth of our businesses drove our financial results into profitability, with net earnings exceeding those of the prior year by nearly $ 100 million,” president/CEO Frank J. Biondi Jr. said.

The company said earnings results were driven by revenues of $ 1.9 billion and segment earnings from operations of $ 419 million, both at record levels for the fifth consecutive year.

10% higher

Fourth-quarter revenues of $ 512 million were 10% higher and segment earnings from operations of $ 99 million were 11% higher than the fourth quarter of 1991. Fourth-quarter net earnings were $ 12 million (10 cents), vs. a net loss of $ 32 million (27 cents) in 1991.

Wall Street analysts said the results were in line with their expectations. Viacom fell off 62.5 cents to close yesterday at $ 43 per share.

Consolidated earnings from operations of $ 348 million for the year increased 11% from ’91. Fourth-quarter consolidated earnings from operations of $ 68 million were up slightly.

41% increase

The aggregate price of one share of Class A and one share of Class B common stock increased 41% during the fourth quarter; as a result, only $ 2 million of the maximum potential liability under the plans remained unaccrued Dec. 31.

Net interest decreased

Due to favorable interest rates, net interest expense of $ 42 million for the fourth quarter decreased 49%.

The networks segment, which includes MTV Networks and Showtime Networks Inc., reported earnings from operations of $ 206 million, an increase of 19% over 1991 . Revenues increased 15% to $ 1.059 billion.

Cable segment increased

Cable Television segment earnings from operations of $ 122 million increased 17% and revenues of $ 411 million increased 9% over 1991.

The broadcasting segment, which includes radio and television operations, reported earnings from operations of $ 432 million for 1992, an increase of 15%. Broadcasting revenues of $ 169 million rose 6%, reflecting higher advertising sales. TV revenues increased 9%; radio increased 3%.

Entertainment segment revenues of $ 248 million were down 9% from 1991.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More TV News from Variety

Loading