Filmed Entertainment Helps Viacom Post Earnings Growth2 Aug, 2007 By: Chris Tribbey
DVD sales and box office hits from DreamWorks and Paramount Pictures helped media conglomerate Viacom Inc. post a 4% growth in earnings during the second quarter of this year, the company announced Aug. 2 during an earnings call.
Viacom had net earnings of $434 million during the quarter while revenues were up 13%, to $3.19 billion.
The company's filmed entertainment segment generated a 20% increase in revenues this quarter, to $1.3 billion, said Viacom president and CEO Philippe Dauman. “We had a very strong slate of films and this was before the release of our new franchise picture, Transformers.” He said discussions for a Transformers sequel are underway.
He also added that Paramount passed the $1 billion mark in domestic gross in early July, the earliest any studio has reached this milestone in a calendar year, he said. “It vaulted the studio to the number one spot in market share,” he said, adding Paramount Pictures International has grossed $1 billion at the box office.
Viacom's filmed entertainment division increase comes thanks to Shrek the Third, according to CAO and CFO Tom Dooley. Home entertainment revenues were up 35%, to $545 million, thanks to Charlotte's Web, Norbit and Dreamgirls.
Viacom is on its way toward exceeding the $500 million revenue goal it set for itself in terms of digital delivery of content, Dauman added.