For the first quarter ended March 31 2003, Viacom revenues increased 7% to a record $6.05bn (£3.83bn) from $5.67bn last time, led by a 14% growth in video and 13% growth in cable. Operating income increased 14% to a record $987m from $866m, led by double-digit growth in cable and TV.
For the quarter, television revenues increased 4% to $1.92bn from $1.85bn, and operating income increased 13% to $243m from $214m, principally driven by advertising revenue growth of 6%.
CBS and UPN Networks combined delivered 3% higher advertising revenues, with 17% increases in primetime partially offset by lower sports revenues. Viacom's local TV stations group delivered 15% higher advertising revenues, of which 10% was contributed by KCAL-TV Los Angeles, acquired in May 2002.
Viacom's cable networks, which includes its MTV, Nickelodeon and Showtime Networks properties, saw revenues increased 13% to $1.17bn from $1.03bn, led by a 17% increase in advertising revenues with growth of 18% at MTV Networks.
Sumner Redstone, chairman and CEO of Viacom, said: "Viacom is off to a strong start in 2003, with high single-digit revenue increases, double-digit gains in operating income and a 26% increase in net earnings in the first quarter."
He added: "Our ability to deliver results to shareholders speaks to the quality and diversity of our business lines, as well as the superior performance of our management team."
First quarter 2003 net earnings were $443m, compared with a net loss of $1.11bn for the same period the year before. The company's earnings before tax, depreciation and amortisation in the first quarter of 2003 increased 12% to a record $1.23bn from $1.09bn.
The results were issued as Viacom confirmed that it has agreed to acquire AOL Time Warner's 50% stake in US comedy channel Comedy Central for about $1.23bn, giving it full control of the network.
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