Media conglomerate Viacom Inc. (VIAb.N: Quote, Profile, Research) on Thursday reported a higher quarterly profit, led by a 21 percent gain in advertising from MTV and Nickelodeon cable networks and the strength of its "CSI" television show.
The New York-based owner of the CBS television network, Paramount Studios and the MTV cable network said first-quarter net income was $711 million, or 41 cents a share, compared with $443 million, or 25 cents a share, a year earlier.
Excluding a tax benefit, the company posted a profit of $570 million, or 33 cents a share, beating the average analyst's estimate of 30 cents a share, according to Reuters Research, a unit of Reuters Group Plc.
Revenue increased 12 percent to $6.77 billion from $6.1 billion a year earlier.
The third-largest U.S. media conglomerate is considered an advertising industry bellwether, as it derives nearly half of its revenue and nearly 70 percent of profits from ad sales.
Some analysts are expecting Viacom shares, which have traded at a discount to its peers in major media, to ascend sharply, led by a glut of political ads and spill-over sales from the summer Olympics.
"Viacom is probably the most ideal vehicle to play large cap media because of their exposure to local broadcasting," Paul Kim, an analyst at Tradition Asiel Securities.
The enthusiasm is also partially driven by Viacom's declarations in February it plans to split off majority stake in video rental chain Blockbuster Inc. (BBI.N: Quote, Profile, Research) , whose uncertain future clouds Viacom's outlook.
Blockbuster's quarterly revenue fell in the first quarter, in higher profits from a tax benefit.
Looking ahead, the company affirmed its forecast for full-year 2004 revenue growth of 5 to 7 percent, operating income growth of 12 to 14 percent and earnings per share growth of 13 to 15 percent.
Operating income and earnings per share growth excludes a 2003 charge related to Blockbuster and a 2004 tax benefit from resolution of the company's federal income tax audit.
The New York-based owner of the CBS television network, Paramount Studios and the MTV cable network said first-quarter net income was $711 million, or 41 cents a share, compared with $443 million, or 25 cents a share, a year earlier.
Excluding a tax benefit, the company posted a profit of $570 million, or 33 cents a share, beating the average analyst's estimate of 30 cents a share, according to Reuters Research, a unit of Reuters Group Plc.
Revenue increased 12 percent to $6.77 billion from $6.1 billion a year earlier.
The third-largest U.S. media conglomerate is considered an advertising industry bellwether, as it derives nearly half of its revenue and nearly 70 percent of profits from ad sales.
Some analysts are expecting Viacom shares, which have traded at a discount to its peers in major media, to ascend sharply, led by a glut of political ads and spill-over sales from the summer Olympics.
"Viacom is probably the most ideal vehicle to play large cap media because of their exposure to local broadcasting," Paul Kim, an analyst at Tradition Asiel Securities.
The enthusiasm is also partially driven by Viacom's declarations in February it plans to split off majority stake in video rental chain Blockbuster Inc. (BBI.N: Quote, Profile, Research) , whose uncertain future clouds Viacom's outlook.
Blockbuster's quarterly revenue fell in the first quarter, in higher profits from a tax benefit.
Looking ahead, the company affirmed its forecast for full-year 2004 revenue growth of 5 to 7 percent, operating income growth of 12 to 14 percent and earnings per share growth of 13 to 15 percent.
Operating income and earnings per share growth excludes a 2003 charge related to Blockbuster and a 2004 tax benefit from resolution of the company's federal income tax audit.
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