Programmer Earnings

Both Viacom and Time Warner reported solid 1Q earnings last week. Viacom's profit rose 5% YOY to $502mln. Revenues grew 1% to $3.17bln, thanks to higher affil fees and ad revenues, which were partially offset by declines in filmed entertainment. Due to higher media networks revenue, operating income rose 3% YOY to %872mln. Media networks revenue increased 6% to $2.38bln. Domestic ad revenue was up 2% and global ad revenue increased 3% to $1.12bln. “Domestic ad was a bit light. The positive, however, was that this was more than offset by stronger affiliate revenue,” analyst Marci Ryvicker with Wells Fargo Securities wrote in a research note. TWX, on the other hand, saw its quarterly income reach $1.3bln from $754mln a year ago. At HBO, subscription revenue increased 8% YOY mainly due to higher domestic rates and the consolidation of HBO Asia and HBO South Asia. Revenues at Turner rose 5% YOY to $2.6bln, helped by 7% growth in subscription revenues and 5% growth in ad revenues.