Viacom optimistic despite slump in revenues, net profit
29 Jul 2009
Viacom Inc., the world's leading entertainment content company, reported revenues of $3.30 billion for the second quarter ended June 30, 2009, a 14 per cent decline from $3.86 billion in the second quarter of 2008.
The company, however, struck a hopeful note as it forecast a decent rise in advertisement revenue in the coming months.
"While the global economy continued to be a challenge in the second quarter, the diversity of our revenue streams, sequential improvement in our domestic advertising sales, our generation of cash and our operational discipline all helped to temper the short-term impact,'' Philippe Dauman, president and chief executive officer of Viacom, said.
Advertisers no longer count on dramatic reductions in prices as we see signs of recovery, Dauman told analysts on a conference call.
The decrease in revenue reflects lower sales in both the Media Networks and Filmed Entertainment segments as weak economic conditions continued to impact certain business sectors.
The company's operating income declined 26 per cent to $586 million primarily as a result of lower year-over-year revenues, which more than offset a $352 million net reduction in expenses in the quarter.
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