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Viacom Inc. Reports Operating Results (10-Q)

February 03, 2011 | About:
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10qk

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Viacom Inc. (VIA) filed Quarterly Report for the period ended 2010-12-31.

Viacom Inc Cl A has a market cap of $2.63 billion; its shares were traded at around $50.51 with a P/E ratio of 17.2 and P/S ratio of 0.3. The dividend yield of Viacom Inc Cl A stocks is 1.3%.Hedge Fund Gurus that owns VIA: Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns VIA: Mario Gabelli of GAMCO Investors, Mario Gabelli of GAMCO Investors, Donald Yacktman of Yacktman Asset Management Co..

Highlight of Business Operations:

Worldwide revenues decreased $191 million, or 5%, to $3.828 billion in the quarter ended December 31, 2010 driven by a decrease in Filmed Entertainment revenues, which was partially offset by an increase in Media Networks revenues. The decrease of $294 million in Filmed Entertainment revenues reflects lower home entertainment and television license fee revenues, partially offset by an increase in theatrical and ancillary revenues. The increase of $126 million in Media Networks revenues reflects higher advertising revenues and affiliate fees, partially offset by lower ancillary revenues.

Adjusted operating income decreased $161 million, or 13%, to $1.040 billion in the quarter ended December 31, 2010. Filmed Entertainments adjusted operating income decreased $234 million principally reflecting the lower revenues. Media Networks contributed a partially offsetting increase of $69 million principally reflecting the increased revenues, partially offset by our continuing investment in programming. Adjusted results for the quarter ended December 31, 2009 excludes the impact of asset impairment.

Worldwide revenues increased $126 million, or 6%, to $2.380 billion in the quarter ended December 31, 2010 driven by increases in advertising revenues and affiliate fees, partially offset by a decline in ancillary revenues. Domestic revenues were $1.984 billion, an increase of $152 million, or 8%. International revenues were $396 million, a decrease of $26 million, or 6%. Foreign exchange had a 2-percentage point unfavorable impact on international growth.

Operating expenses increased $53 million, or 7%, to $778 million for the quarter ended December 31, 2010. Production and programming expenses increased $62 million, or 10%, reflecting expenses associated with our continuing investment in programming. Distribution and other expenses decreased $9 million, or 11%.

Worldwide revenues decreased $294 million, or 16%, to $1.497 billion in the quarter ended December 31, 2010, driven by a decline in home entertainment and television license fee revenues, partially offset by higher theatrical revenues and an increase in ancillary revenues reflecting the sale of substantially all of the worldwide distribution rights to The Avengers and Iron Man 3 to MVL Productions LLC (Marvel), a subsidiary of The Walt Disney Company. Domestic revenues were $784 million, a decline of $233 million, or 23%. International revenues were $713 million, a decline of $61 million, or 8%. Foreign exchange had a 2-percentage point unfavorable impact on international revenues in the quarter ended December 31, 2010.

Operating expenses decreased $18 million, or 1%, to $1.288 billion in the quarter ended December 31, 2010. Film costs declined $272 million, or 31%, primarily reflecting lower amortization of film costs due to the mix of home entertainment releases and fewer pay TV availabilities. Distribution and other costs, principally print and advertising expenses, increased by $254 million, or 57%, due to the increase in number of theatrical releases, partially offset by lower home entertainment costs.

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