Viacom to Spin Off Blockbuster, Has Loss

Reuters via Excite ^ | 2/10/04 | Kenneth Li

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Viacom, which owns the CBS television network, Paramount Studios and MTV Networks, also reported a fourth-quarter loss, including a $1.3 billion accounting charge to write down goodwill of Blockbuster and other assets.

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Viacom reported a fourth-quarter loss of $385.4 million, or 22 cents per share, including the accounting charge of $1.3 billion, or 58 cents a share.

The loss compared with a profit of $652 million, or 37 cents a share, in the year earlier period.

Revenue rose 11 percent to $7.5 billion, from $6.8 billion a year earlier.

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Analysts were concerned about lower profit margins at the cable networks.

"The margins are contracting," said Paul Kim, an analyst at Tradition Asiel. "It's something media investors should be worried about."

Margins on earnings before interest, tax, depreciation and amortization at the cable network fell to 41.2 percent, down 4 percentage points from the third quarter and down 2 percentage points from the year-earlier period.

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GOOD NEWS about Viacom, CBS, and MTV. Losses are up, margins are down on the cable side. Less money available for Democrat candidates.