MUMBAI: Raghav Bahl-promoted TV18 Group has offered Viacom to buy the remaining 50 per cent stake in ETV?s general entertainment channels (GECs) as part of the plan to broaden its joint venture partnership with the global media giant.

Viacom is conducting a due diligence of the ETV assets before it decides to participate in TV18?s regional-language entertainment ambitions. Early last year, TV18 inked a deal to acquire 50 per cent stake in ETV?s Marathi, Bangla, Kannada, Gujarati and Oriya entertainment channels, along with the option of picking up the balance 50 per cent interest. It also has 24.5 per cent stake in ETV Telugu and can add a similar equity interest in the Telugu GEC.

?Viacom has the option to acquire stake in ETV?s entertainment channels. They are looking at it,? Viacom18 Group chief executive officer Sudhanshu Vats tells Indiantelevision.com.

After getting Viacom?s equity participation, the ETV GECs will get housed under Viacom18. The new owners will, thus, get full ownership of the five ETV GECs (ETV Marathi, ETV Bangla, ETV Kannada, ETV Gujarati and ETV Oriya) while half of ETV Telugu?s equity will get transferred.

Viacom18 is an equal joint venture between TV18 Broadcast and Viacom. The company owns and operates a clutch of channels including Colors, MTV, Vh1, Nick, Comedy Central, Sonic and Nick Jr. It also runs a film production business through Viacom18 Motion Pictures.

In a deal valued at Rs 21 billion, TV18 Group agreed to also acquire 100 per cent stake in ETV?s five news channels ? ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar and ETV Urdu. Besides, it will have 24.5 per cent stake in ETV Telugu News.

 
Viacom will not be part of the news venture of TV18.

"We are poised for strong growth across all our broadcast and film production businesses. Digitisation will help us drive subscription revenue growth while bringing carriage fees down. Regional-language channels will also form an important pillar of growth once we integrate the ETV channels," says Vats.

In FY12, Viacom18 posted operating revenue of Rs 15.69 billion. The financial figures obviously did not include the ETV channels.

MUMBAI: US media conglomerate Viacom?s revenues for the first quarter ended 31 December 2012 have fallen by 16 per cent to $3.3 billion from $3.9 billion in the same period last year. The reason was lower revenues from the film division as a result of the schedule of releases.

Operating income and adjusted net earnings from continuing operations attributable to Viacom declined by 22 per cent to $797 million and $461 million, respectively, reflecting lower film results and a decline in Media Networks ad revenues, partially offset by increased affiliate revenues. Adjusted diluted earnings per share from continuing operations decreased by 14 per cent to $0.91 per diluted share.

Media Networks revenues decreased by two per cent to $2.39 billion. Domestic and worldwide ad revenues each decreased by six per cent. The decline in domestic ad revenues was driven by lower ratings. Domestic affiliate revenues increased by four per cent. Excluding the impact of digital distribution arrangements, which are affected by the timing of available programming, the domestic affiliate revenue growth rate was in the low-double digits. Worldwide affiliate fees increased by three per cent.

Filmed Entertainment revenues were down by 37 per cent to $975 million. Worldwide theatrical revenues decreased by 42 per cent in the quarter to $328 million, principally reflecting the difficult comparison against the prior year release of ?Mission: Impossible - Ghost Protocol?, as well as the year over year comparison of revenue from third-party theatrical releases. Worldwide home entertainment revenues declined 43%, principally resulting from fewer releases in the quarter compared to the first quarter of 2012. The decline in home entertainment revenues also reflects lower carryover revenues from the prior period release of ?Transformers: Dark of the Moon?. Television license fees decreased by 24 per cent to $227 million in the quarter.

Viacom executive chairman Sumner M. Redstone said, "Viacom continues to build on its impressive global portfolio of movies, television programming and digital content. Philippe leads a talented executive and creative team at Viacom, and I am fully confident that by investing in new hits we will continue to build our outstanding brands and deliver strong value to shareholders."

Viacom president, CEO Philippe Dauman said, "Throughout the quarter, we kept our focus on creative excellence and strategic programming investment. Our ongoing investments in programming continue to produce results, with positive ratings trends and growing consumer engagement in new hit content, despite difficult short-term comparisons based on the mix of film releases and the lingering effect of ratings softness last year. Our television brands continue to be highly valued by distribution partners, highlighted by our double digit organic affiliate revenue growth. Paramount is well positioned for the future, with several upcoming tentpole releases, including G.I. Joe: Retaliation, Pain & Gain, Star Trek Into Darkness and World War Z. In addition, we are working closely with existing distribution partners and new digital distributors to continue to launch robust and consumer-friendly content experiences.

"Viacom?s ability to generate significant cash flow permits us to continuously invest in our businesses and deliver value directly to shareholders through our share repurchase and dividend programs. Viacom?s strong balance sheet has provided the flexibility to tap the financing markets and lower our average cost of debt."