Entertainment giant Viacom saw profits grow by 9% in the third quarter on the back of an advertising upturn, notably at the group’s cable division.
The US company, which owns the MTV, Nickleodeon and CBS Networks, yesterday reported net income of $700 million for the three months to September. This is up from $640 million in the same period last year.
Advertising revenues rose 8% to $2.9 billion with overall group revenues totalling $6.6 billion, an increase of 5% year on year. Cable was the real success story with profits up by a fifth as the networks attracted new viewers and advertising dollars.
On the downside, the entertainment division experienced a 24% fall in earnings and the outdoor business saw a 29% decline. Local advertising, as a whole, remains weak but this is expected to change in 2004 as conditions improve and the presidential election boosts spending.
“Viacom delivered the best third quarter performance in its history,” said president and chief operating officer Mel Karmarzin. “Viacom is extraordinarily well positioned to benefit from an improving economic environment.”
