Home Entertainment, Theatrical Boost Viacom Q229 Jul, 2008 By: Chris Tribbey
Paramount Pictures parent Viacom July 29 reported a nice jump in revenue for the second quarter 2008, thanks to three summer blockbusters and a 12% increase in home entertainment revenues, compared to the same period in 2007.
For the quarter ending June 30, Viacom reported net income of $407 million, down from $434 million during the same period last year. Revenues were up 21% to $3.86 billion, compared to $792 million in 2007.
“The companies that possess the best content will emerge on top,” said Sumner Redstone, executive chairman and founder of Viacom, of the Indiana Jones and the Kingdom of the Crystal Skull, Iron Man and Kung Fu Panda films (the last coming from DreamWorks).
“While in a transition, [there] has never been a better time to be in the content business,” added CEO and president Philippe Dauman.
For home entertainment, Viacom said DVD re-releases of the first three “Indiana Jones” films boosted that category, as did the new releases of Cloverfield and Sweeney Todd, both top ten sellers for the year, the company said.
“We are still early in the cycle of the studio's comeback financial status,' Dauman said. “The profits from breakout films will continue to cascade through our business for some time.'
During a conference call with investors, Viacom officials said they had no new details to share regarding a new VOD venture that will distribute films from Paramount, MGM and Lionsgate.
“In an increasingly ‘I want it now' culture, VOD will continue to grow,” Dauman said, predicting annual double-digit growth in VOD and PPV revenues.
As for reports that DreamWorks' split from Viacom is coming, Dauman said Viacom would save money in overhead and marketing costs should it occur.
“The savings would be significant,” he said.