MUMBAI: Viacom, the owner of Paramount Pictures, MTV and Nickelodeon, has reported consolidated revenues of $3.33 billion for the fiscal second quarter ending 31 March driven primarily by higher Media Networks affiliate revenues.

Quarterly operating income increased 23 per cent to $932 million in the quarter. Media Networks adjusted operating income increased 11 per cent to $893 million, principally reflecting the increase in affiliate revenues. Adjusted operating income in the Filmed Entertainment segment increased 195 per cent to $115 million, driven principally by lower distribution costs, which more than offset lower revenues.

Quarterly adjusted net earnings from continuing operations attributable to Viacom rose $105 million to $535 million, a gain of 24 per cent over the same period last year.

The increase is principally due to the growth in operating income across the company. Adjusted net earnings from continuing operations attributable to Viacom rose 24 per cent in the quarter to $535 million.

Viacom executive chairman Sumner M. Redstone said, "Viacom continues its strong track record of growth and innovation, creating the world?s best entertainment content and operating more efficiently every day. Throughout the Company, our leaders tirelessly build Viacom?s
outstanding global properties in order to drive superior value for shareholders."

Media Networks revenue growth of five per cent was driven by an increase in affiliate fee revenues, partially offset by a decrease in ancillary revenues. Domestic affiliate revenues increased 15 per cent and worldwide affiliate revenues grew 17 per cent in the quarter, in each case reflecting higher revenues from digital distribution agreements, as well as rate increases.

Domestic advertising revenues increased one per cent, while worldwide advertising revenues remained flat at $1.07 billion for the quarter.

Filmed Entertainment revenues decreased five per cent, to $1.17 billion, reflecting lower theatrical and television license fee revenues, partially offset by higher ancillary revenues. Worldwide theatrical revenues decreased 19 per cent in the quarter, as the mix of films, which generally were less widely distributed, did not match the performance of releases in the same period last year.

The current quarter releases were The Devil Inside, A Thousand Words, and Jeff, Who Lives at Home, and the year prior featured significant hits Rango, No Strings Attached and Justin Bieber: Never Say Never. Worldwide Filmed Entertainment ancillary revenues increased 41 per cent to $111 million in the quarter, principally driven by higher digital revenues. Home Entertainment revenues were up slightly.

At the end of the current quarter, the total debt outstanding, including capital lease obligations, was $7.78 billion, compared with$7.37 billion at 30 September 2011. The company?s cash balances were $1.14 billion at 31 March 2012, an increase from $1.02 billion at 30 September 2011.