HITS Daily Double
"We are confident in our ability to deliver on our full-year financial targets for 2002."
——Sumner Redstone, Viacom Chairman/CEO


Record Revenues of $6.3 Billion, Up 10%, Operating Income at $1.3 Billion, TV, Cable Earnings Up
Sumner Redstone has more than his upcoming wedding to celebrate. And we don’t mean Mel Karmazin’s resignation either.

Viacom reported a record $6.3 billion in revenues in its Third Quarter report, beating by 10%, the $5.7 billion over a comparable period last year. Led by its broadcast and cable networks—including MTV—advertising revenues were up 14%.

Viacom also reported net earnings of $640 million for the third quarter of 2002, compared with a net loss of $190 million for Q3 2001, which should make Sumner very happy. The company’s EBITDA in the third quarter increased 56% to $1.5 billion from $977 million for Q3 2001.

Cable network revenues grew 13% for Q3 ’02, with operating income rising 41%, to $511 million from $363 million, representing 20% of the cmopany’s total revenue. Television was responsible for 29% of Viacom’s Q3 revenue, while Blockbuster Video earned 22% of the pie.

For the nine months ending Sept. 30, 2002, revenues were up to $17.8 billion from $17.2 billion over a comparable period last year, with operating income at $3.3 billion, up from $1.2 billion last year. Net earnings were up to $1.6 billion for the nine months, compared to a net loss of $181 million in 2001.

Said Chairman/CEO Redstone: "Viacom’s record third quarter performance was outstanding, with revenues and operating income up across every one of our segments. Clearly the strength of our assets and the talent, commitment and superior execution of our management team, led by Mel Karmazin, have spurred Viacom to excel. We are confident in our ability to deliver on our full-year financial targets for 2002. Now, will you excuse me. I’m about to join Johnny Knoxville in a shopping cart and hurtle down this steep hill."

Added President/COO Karmazin: "Our record third quarter results demonstrate the underlying vibrancy of our core businesses, the continued strengthening of ad sales, the strategic validity and superior execution of the Viacom/CBS merger and the popularity of the new ‘It’s Just Wrong’ game on the Howard Stern show."

At presstime, Viacom shares were down 2.96 to 44.22.