Viacom Inc. recorded revenues of $3.19 billion in the second quarter, up 13% from the same period last year.
The consolidated revenue growth was the result of strong performance in both its network and entertainment segments. The media networks segment revenue was up 10% to $1.92 billion from $1.75 billion in Q2 2006. The growth was fueled by a 6% increase in worldwide advertising to $1.15 billion and a 15% rise in affiliate fees to $577 million.
Filmed entertainment revenues jumped 20% to $1.3 billion from $1.1 billion in the year ago period led by a 35% increase in home entertainment to $545 million and 34% increase in theatrical to $437 million.
"Our Filmed Entertainment segment delivered an outstanding quarter of results with multiple box office hits, including Blades of Glory, Disturbia and the distribution of DreamWorks Animation's Shrek the Third,” Viacom President Philippe Dauman said in a statement. “We are very pleased with the success of Transformers, our summer tentpole released in early July, which is well positioned to become a new franchise property.”
The company saw a 6% rise in operating income to $702 million from $662 million. Operating income at the media networks was up 3% to $734 million while filmed entertainment was $21 million compared to $5 million a year ago. The growth in media networks was offset by a 14% rise in expenses, particularly restructuring charges which the company said shaved two percentage points of operating income growth. Entertainment growth was tempered by film-related costs, including those associated with Transfomers.
Net earnings in the quarter were $434 million, down 1% from $437 million in Q2 2006.