Amid a multitude of layoffs and structural changes, Viacom‘s media nets segment reported Thurs a 7% increase in Y-over-Y ’06 rev to $7.24bln, led by an 11% jump in affil rev to $2bln. Not too shabby, but "a great deal of our [4Q rev] growth was due to… acquisitions," CFO Thomas Dooley said during an earnings call, and "domestic ad revenues (+4%) came in lower than we expected, primarily because of ratings shortfall at Nick at Nite and TVLand and, to a lesser extent, at MTV." Pres/CEO Philippe Dauman confirmed speculation of troubled waters across the nets. "Without question, we are passing through a period of substantial transformation," he said. "That is precisely why we are putting an intensified focus on execution in all areas." Restructuring will cost $70mln this year, Dooley said, of which $50mln will be charged against Q1 results. But there is some sweet music, as strengthening 1Q domestic ad sales growth and continued success in the digital space—Viacom expects to deliver $500mln in digital rev by year’s end—are providing optimism. As MTVN‘s 4Q digital ad rev rose nearly 60% and the number of digital advertisers grew 60% in the Q,‘s unique visitors in Jan surged 55% Y-over-Y, and was up a whopping 90%, said Dauman. Still, Merrill Lynch maintained its ‘neutral’ rating on Viacom shares, citing "the potential for further negative announcements" in the near term.

The Daily


71% of TV Households Have Pay TV Service

Leichtman Research reports that 71% of TV households nationwide have some form of live pay TV service, though the percentage of households that have such a service (via cable, satellite, telco, or

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up


Dec 7
Most Powerful Women Celebration Register to Join Us in NYC to Celebrate!
Full Calendar


Seeking an INDUSTRY JOB?

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact for more information.