LONDON (Brand Republic) - Strong advertising sales and a good performance by recently acquired CBS Network boosted US entertainment giant Viacom’s full-year results, with losses down at $363.8m (£251m) from $371.7m (£256.4m) last time.
Full-year revenues increased to $20bn (£13.8bn) from $12.8bn (£8.8bn) for 1999. However, fourth-quarter net earnings were down to $30.4m (£21m) from $133.1m (£91.8m), while cash flow rose 17% to $1.36bn (£938m). Revenues grew 5% to $6.35bn (£4.48bn).
Viacom president and chief executive officer Mel Karmazin said there would be modest growth in the first half of 2001, despite an anticipated slowdown in advertising revenues.
The sharp decline in advertising spending in the internet start-up sector has hit media companies’ sales revenues. There are also concerns that the decline could spread to other sectors, amid fears that the automotive sector is slashing its advertising spend.
A slowdown in advertising revenues could be offset by a stronger performance at its filmed entertainment business Paramount Pictures. The division expects success later in the year with releases such as Tomb Raider and Jimmy Neutron.