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Viacom tunes in higher 1Q
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April 27, 1999: 9:50 a.m. ET
Strong performance by MTV Networks bolsters entertainment company
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NEW YORK (CNNfn) - Viacom Inc., aided by strong showings from its Nickelodeon, MTV and VH1 cable networks, Tuesday reported higher first-quarter earnings from operations that were above a consensus estimate.
The New York-based entertainment company said earnings from operations rose to $68 million, or 8 cents a diluted share, from $48 million, or 5 cents, a year earlier. The results were above the 6 cents a share consensus of analysts surveyed by First Call.
Net income for the quarter rose to $44.9 million from $1.4 million. After computing preferred dividend requirements, the company's per share net was 5 cents a diluted share in 1999, compared with a loss of 2 cents a share a year earlier.
Revenue rose 10 percent to $2.95 billion. Earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 3 percent to $474.6 million.
Leading the way was a 29 percent EBITDA increase for the MTV Networks and a 44 percent gain in EBITDA for Showtime, the company's premium cable channels. Advertising revenue for the MTV networks, including the Nickelodeon children's channel and the VH1 music channel, posted a double digit gain, according to the company.
The Rugrats helped bolster results for MTV Networks' Nickelodeon
Viacom (VIA) also said it was pleased with filmed entertainment revenue even though it was slightly lower. The results suffered in comparison to the year earlier, when the company was reaping its share of the record-setting revenue of "Titanic." Among the quarter's successful films: "Varsity Blues" and "Payback."
Viacom chairman Sumner Redstone also expressed satisfaction with results for its Blockbuster video rental and entertainment operations, crediting increased advertising with a 20 percent revenue increase and 23 percent gain in same-store revenue.
Viacom shares closed Monday at 46-9/16, up 3/8. 
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Viacom
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