With help from some giant, mercurial robots, Viacom’s net earnings for the third quarter of 2007 increased 80% over the same quarter last year. Buoyed by the tremendous worldwide box office success of the CG-laden DreamWorks/Paramount release Transformers, the company’s revenues rose 24% to $3.27 billion for the quarter ended Sept. 30.
‘Viacom delivered solid growth at the top and bottom lines in the third quarter,’ says Viacom president and CEO Philippe Dauman. ‘In Filmed Entertainment, we enjoyed phenomenal success with our new global franchise Transformers, which is continuing with the recent release of the film on DVD. Looking ahead, we are very pleased with our 2008 movie slate, which includes a broad spectrum of film genres across our family of brands.’
Filmed Entertainment operating income grew by $80 million in the quarter. Higher revenues were partially offset by increased film amortization and higher print and advertising costs, including expenses related to Transformers. Corporate expenses were essentially flat, excluding the $62 million in compensation paid to outgoing president and CEO Tom Freston in the third quarter of 2006.
Based on the hit ’80s cartoon series and Hasbro toyline, Transformers raked in more than $316 million domestically and $700 million worldwide. Paramount and Dreamworks have fast-tracked a sequel for a June 26, 2009 release, with director Michael Bay, exec producer Stephen Spielberg and star Shia LaBeouf expected to be back on board.
Viacom owns BET Networks, MTV Networks and Paramount Pictures. Among its 145 television and online outlets are Nickelodeon, Noggin, Nick at Nite, MTV, VH1, CMT, Logo, Harmonix, AddictingGames, Neopets, Comedy Central, Spike TV, TV Land, Gametrailers and BET.
