Viacom Reports Strong Quarter

Viacom posted a better-than-expected fourth-quarter profit Thursday morning, led by strong results at its cable programming, movie and video retail units.

The entertainment giant (VIA.B) also declared a 2-for-1 stock split, payable March 31 to shareholders of record as of March 15. In addition, Viacom said its stock will be listed on the New York Stock Exchange beginning April 8.

Excluding items, Viacom's profit from operations in the December period was $90 million, or 30 cents per share, compared to a profit from operations of $575 million, or $1.54 per share, in the year-earlier period.

The shares rose 3/16 to to 86 13/16, while the class A shares (VIA) added 1 1/8 to 86.

Analysts surveyed by First Call were looking for a profit of 13 cents.

Including a gain, net income was $36.3 million, or 10 cents a share, in the current-year period.

Revenue rose to $3.34 billion from $2.91 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 24 percent to $502.4 million from $406 million.

The company's cable networks and television stations generated EBITDA of $336.4 million, just ahead of the $335 million estimated by analyst Fred Moran at ING Barings Furman Selz. The cable programming operations include MTV Networks unit, which is comprised of MTV, Nickelodeon, TV Land, VH1 and a partial interest in Comedy Central; and pay-based Showtime Networks, which includes three Showtime channels, two editions of The Movie Channel, Flix and the Sundance Channel.

MTV Networks was driven by "higher advertising revenues" at Nickelodeon and MTV, along with license fees from Nickelodeon's Rugrats and Blue's Clues kiddie programs. Year-over-year increases at Showtime were fueled by "higher subscription revenues and lower programming costs," Viacom said in a statement.

EBITDA for the movie category, including Paramount's feature film and television units, as well as Spelling Entertainment's TV productions, rose 26 percent to $49.6 million. Home video sales of Titanic and Deep Impact boosted results, as did the continued theatrical success of Saving Private Ryan.

The figure fell short of Moran's estimate of $52 million, but was ahead of the $45 million expected by analyst John Tinker at Nationsbanc Montgomery Securities.

Written By David B. Wilkerson, CBS MarketWatch