Viacom Q4 earnings 'probably rose'

Viacom Inc, the media company controlled by Sumner Redstone, may say fourth-quarter profit rose on higher ratings at its MTV cable networks and DVD sales of the Transformers movie.

Net income probably increased 12 percent to $536.8 million, or 82 cents a share, from $480.8 million, or 69 cents, a year earlier, based on the average of eight analysts' estimates compiled by Bloomberg. Sales may have gained 10 percent to $3.97 billion.

The programs A Shot at Love With Tila Tequila and The Hills boosted MTV ratings as much as 15 percent, reversing declines, Goldman Sachs Group Inc analyst Ingrid Chung wrote in a Feb 18 report, citing Nielsen Media Research.

Viacom's Rock Band video game sold 1.3 million copies to add $150 million in sales, Chung wrote, while Transformers was 2007's best-selling DVD, according to Home Media Magazine.

"They recognized the cable networks are key to delivering the niches they target and sell to advertisers," said James Goss, an analyst with Barrington Research in Chicago. He recommends buying the shares and doesn't own them.

Viacom Class B fell 52 cents to $41.90 on Wednesday in New York Stock Exchange composite trading. It has fallen 4.6 percent this year. Of 27 analysts who follow the New York-based company, 18 recommend buying the stock, eight say hold and one says sell.

Company spokeswoman Kelly McAndrew said Viacom doesn't discuss earnings prior to their release.

Agencies

(China Daily 02/29/2008 page17)