Viacom reported an $18 billion loss in the 4th quarter ending Dec...
Viacom reported an $18 billion loss in the 4th quarter ending Dec. 31, reflecting a steeply falling market in radio and outdoor advertising. The report comes a month after Chmn. Sumner Redstone announced plans to divest some of its…
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radio stations in smaller markets (CD Jan 13 p2). Radio’s $11 billion loss, including a $10.9 billion writeoff of good will and intangibles, compares to income of $252 million a year ago. The firm also wrote off $7 billion in its outdoor advertising segment. Overall, Viacom reported a revenue gain of 6% from $5.9 billion to $6.3 billion during the quarter, led by double-digit increases in the Cable Networks segment. For the year, revenue increased 8% to $22.5 billion from $20.8 billion. Ad revenue was up 11%, led by growth of 21% in Cable Networks and 11% in TV. Fourth-quarter revenue for cable was up 15% to $1.9 billion from $1.7 billion; TV was up 5% to $2.2 billion and radio was unchanged at $551 million. Operating income for cable was up 9% to $691 million and broadcast was up 22% to $295 million. For the year, Cable Networks revenue increased 17% to $6.6 billion from $5.6 billion, driven by a 21% increase in ad revenue and 8% gain in affiliate fees. Leaders in ad revenue include MTV, Comedy Central, Nickelodeon, VH1, TV Land, Spike TV and BET. Broadcast TV revenue increased 10% to $8.5 billion and operating income was up 25% to $1.5 billion. CBS and UPN networks were the leaders in ad revenue with political advertising and Super Bowl XXXVIII helping bolster revenue. TV license revenue was slightly higher due to Everybody Loves Raymond and cable availability of CSI and Star Trek: Deep Space Nine. Radio revenue was essentially flat at $2.1 billion and excluding the $11 billion charge operating income was down 6 % to $918 million from $975 million, driven by slim 1% growth in advertising revenue and higher expense for talent and sports rights.