Viacom Revenues Rise as Profits Slip in First Quarter
Viacom Inc., parent of Nickelodeon and Paramount Pictures, earned $317.2 million in the first quarter of 2006, down 2.5% from the same period last year, the company reported earlier this week. First quarter revenues rose 12% during the quarter to $2.37 billion, while operating income rose 3% to $623.5 million.
The company blamed the drop in net earnings on higher interest expenses.
Improvement in operating earnings came thanks to an 8% rise in income at the company’s Cable Networks division. That division, which includes MTV, Nickelodeon, TV Land, SPIKE TV, and Comedy Central, earned $621.1 million in the first quarter on a 7% rise in revenue to $1.6 billion.
Operating income at the Entertainment segment, which includes Paramount and the company’s newly acquired DreamWorks studio, fell 28% to $51.1 million from the same period last year. Revenues at the division rose 25% to $824.9 million.
[Source: Viacom Inc.]