Viacom Inc. (NYSE: VIA and VIA.B) has announced the updation of its 2008 full year Business Outlook, reflecting continuing difficult economic conditions. Viacom now expects to deliver growth in adjusted diluted earnings per share from continuing operations in a range of mid-single to low double digit for the full year 2008. This outlook is based on adjusted earnings and reflects growth from 2007 adjusted diluted earnings per share from continuing operations of $2.36.
Based on preliminary information, Viacom now expects to report adjusted diluted earnings per share of approximately $0.53 to $0.55 for the third quarter of 2008. The Company said that its third quarter performance will be impacted by a decline of approximately 2% in worldwide advertising revenues. This decline reflects a decrease of approximately 3% in domestic advertising revenues and an increase of approximately 8% in international advertising revenues. Viacom said affiliate and ancillary revenues grew at a double-digit rate in the third quarter.
Viacom President and Chief Executive Officer Philippe Dauman said: “Given the rapid softening of the economy and the uncertainty this creates in forecasting advertising growth, we are taking the prudent step of moderating our near-term targets. At the same time, we are moving quickly to adapt to the changing environment and will take appropriate steps to secure new efficiencies that will enhance our long-term earnings growth
“Viacom is fundamentally strong with powerful brands and leadership positions in attractive and growing media segments around the world. We
have a strong balance sheet and we continue to generate significant cash flow, which are important attributes in this time of economic uncertainty.”
Viacom plans to provide additional information regarding its third quarter results and business outlook during its regular quarterly conference call on Monday, November 3, at 4:30 p.m. (ET), following the release of its earnings announcement.
Viacom, consisting of BET Networks, MTV Networks and Paramount Pictures, is the world’s leading entertainment content company. It engages audiences on television, motion picture and digital platforms through many of the world’s best known entertainment brands, including MTV, VH1, CMT, Logo, Rock Band, Nickelodeon, Noggin, Nick at Nite, AddictingGames, Neopets, COMEDY CENTRAL, Spike TV, TV Land, Atom, Gametrailers, BET, Paramount Pictures, DreamWorks Pictures and Paramount Vantage. Viacom’s global reach includes approximately 160 channels and 340 online properties in 160 countries and territories.