Viacom Inc. (VIAB), owner of the Paramount film studio and MTV, Nickelodeon and Comedy Central cable channels, reported fiscal second-quarter earnings that exceeded analysts’ estimates on higher fees from pay-TV systems.
Excluding items, profit jumped to 98 cents a share, New York-based Viacom said today in statement. Analysts predicted 89 cents, the average of estimates compiled by Bloomberg. Sales rose 2 percent to $3.33 billion, in line with projections.
Viacom’s media networks unit, which contributed 92 percent of operating profit in fiscal 2011, according to data compiled by Bloomberg, is benefiting from higher fees for its cable channels, Vasily Karasyov, an analyst at Susquehanna Financial Group LLP in New York, said in an April 10 report. U.S. ad sales rose 1 percent from a year earlier following a 3 percent decline in the first quarter.
Net income increased 56 percent to $585 million, or $1.07 a share, from $376 million, or 63 cents.
Media Networks operating profit climbed 11 percent to $893 million on $2.19 billion in sales. MTV airs “Jersey Shore,” while Comedy Central is home to “The Daily Show with Jon Stewart.”
Operating profit at the Entertainment Division that includes Paramount’s film studio almost tripled to $115 million on revenue of $1.17 billion. In the period, Paramount collected $227 million in U.S. box office sales led by “Mission: Impossible -- Ghost Protocol,” according to researcher Box Office Mojo.
The company said it repurchased 14.7 million shares during the quarter ended March 31, for an aggregate of $700 million. As of yesterday, Viacom had $5.9 billion remaining in its $10 billion stock buyback plan.
Viacom, controlled by Chairman Sumner Redstone, added 1.8 percent to $47.43 yesterday. The stock has climbed 4.4 percent this year.
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