US media company Viacom has credited its 11 per cent rise in
first-quarter profits to a large increase in ad sales revenues from its
Ad revenues from both MTV Networks and Nickleodeon rose by 20 per cent
on the previous quarter.
Viacom’s first-quarter profits for this year beat Wall Street’s official
forecast of a 6 per cent rise.
Sumner Redstone, chief executive of Viacom, said he was confident the
advertising boom would continue, stating: ’We are witnessing a bull
market in advertising.’
It was also announced the company will float MTVi, the internet
properties of MTV, but Redstone stressed Viacom would choose its timing
carefully before proceeding.
The results coincide with reports that the proposed merger between
Viacom and CBS would be given the go-ahead by the Federal Communications
Commission with the proviso that both parties sell off certain
Revenue at Viacom’s entertainment division, which includes film and TV,
declined by 3 per cent. This was attributed to the lack of significant
cinema releases for this quarter.
However, Redstone predicted a strong box-office intake for Mission
Impossible II and Shaft, which will be released in the second quarter.