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Viacom Inc. Reports Operating Results (10-Q)

April 28, 2011 | About:
10qk

10qk

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Viacom Inc. (VIA) filed Quarterly Report for the period ended 2011-03-31.

Viacom Inc. has a market cap of $2.89 billion; its shares were traded at around $56.03 with a P/E ratio of 19.7 and P/S ratio of 0.3. The dividend yield of Viacom Inc. stocks is 1.1%. Viacom Inc. had an annual average earning growth of 29.9% over the past 5 years.

Highlight of Business Operations:

Adjusted operating income increased $206 million, or 37%, to $760 million in the quarter ended March 31, 2011. Filmed Entertainments adjusted operating income was $39 million, compared with an $83 million loss in the prior year quarter principally reflecting higher income from home entertainment and television license fee revenues. Media Networks adjusted operating income increased $91 million principally reflecting the increased revenues, partially offset by our continuing investment in programming. There were no adjustments to operating income in the quarters ended March 31, 2011 and 2010.

Adjusted operating income increased $45 million, or 3%, to $1.800 billion in the six months ended March 31, 2011. Media Networks adjusted operating income increased $160 million principally reflecting the increased revenues, partially offset by our continuing investment in programming. Filmed Entertainment contributed a partially offsetting decrease of $112 million principally reflecting the lower home entertainment and television license fee revenues. Adjusted results for the six months ended March 31, 2010 exclude the impact of asset impairment.

Adjusted net earnings from continuing operations attributable to Viacom increased $175 million and $102 million in the quarter and six months ended March 31, 2011, respectively, principally due to the increase in tax-affected adjusted operating income described above and higher equity income principally due to EPIX generating equity income this year as compared with losses in the prior year. Our effective income tax rate was 34.5% in the quarter and six months ended March 31, 2011, as compared with 36.2% in the quarter and 35.7% in the six months ended March 31, 2010, excluding the impact of discrete items. The reduction in this years effective rate is principally due to a change in international mix of income. Adjusted diluted EPS from continuing operations increased $0.30 per diluted share to $0.72 for the quarter and $0.18 per diluted share to $1.74 for the six months.

Worldwide revenues increased $198 million, or 11%, to $2.082 billion in the quarter, and $324 million, or 8%, to $4.462 billion in the six months ended March 31, 2011, driven by increases in advertising revenues and affiliate fees. Domestic revenues were $1.767 billion in the quarter, an increase of $166 million, or 10%, and $3.751 billion in the six months ended March 31, 2011, an increase of $318 million, or 9%. International revenues were $315 million in the quarter, an increase of $32 million, or 11%, and $711 million in the six months ended March 31, 2011, an increase of $6 million, or 1%. Foreign exchange had a 2-percentage point favorable impact on international growth in the quarter while it had a 1-percentage point unfavorable impact on international growth in the six months.

Operating expenses increased $57 million, or 9%, to $715 million in the quarter, and $110 million, or 8%, to $1.493 billion in the six months ended March 31, 2011. Production and programming expenses increased $49

Adjusted operating income increased $91 million, or 13%, to $806 million in the quarter, and $160 million, or 9%, to $1.857 billion in the six months ended March 31, 2011, principally reflecting the higher advertising and affiliate revenues, partially offset by our continuing investment in programming and the higher SG&A costs.

Read the The complete Report

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