VIACOM’S Q2 RESULTS SHOWS REVENUE, INCOME UP

The House of Redstone and Freston reported its results for the second quarter and half-year ending June 20, with revenue up 24% to $2.85 billion and operating income up 14% to $663.2 million for Q2.

“Viacom’s solid second-quarter results prove that the enduring strengths of our content and our segment-leading brands continue to resonate with consumers and advertisers,” said Viacom boss Sumner Redstone, clearly articulating the words penned for him by some poor, $50k a year PR lackey. “And I just love watching that Laguna Beach.”

Added President/CEO Freston: “Despite a challenging cable advertising environment, we once again outperformed the market, driving success with our best-in-class brands and unmatched connections with our audience.”

Cable revenues were up 8% to $1.75 billion, with domestic advertising revenues up 10% to $969.1 million and affiliate fees up 11% to $501.8 million. For the six month period, cable revenue was up 7%, from $3.1 billion to $3.3 billion. Cable operating income was up 12%, from $637m to $710m, for the quarter and up 10% for the six-month period, from $1.2b to $1.3b.

Entertainment revenues were up $418.4 million in the quarter, to $1.1b, principally attributed to the acquisition of DreamWorks’ film and animation library, which contributed $345.1m or 63% of the reported growth vs. last year. For the six-month period, Entertainment revenue was up 43%, from $1.4b to $1.9b, while operating income was up from a loss of $23m in Q2 2005 to a positive flow of $6.4 million this quarter. For the six-month period, Entertainment operating income rose 21%, from $47.7 million to $57.5 million.