Viacom’s U.S. cable ad sales bounced back during the second quarter, but Viacom division’s overall cable revenues increased more modestly.
Company-wide revenue increased 24% to $2.8 billion, but most of that gain came from the acquisition of movie studio DreamWorks. Without that deal, Viacom’s revenues would have increased 9%.
Investors are anxious over the company’s cable unit, composed of MTVN and BET, because they’re unaccustomed to single-digit percentage growth after enjoying roaring gains over the past few years.
The cable unit generated $1.8 billion in total revenue, up 8%. Domestic ad sales rose 10%, better than the alarming 6% posted during the first quarter. License fees from cable and DBS operators increased 10%.
The company’s international cable operations, however, fared much worse. Foreign ad revenues dropped 2%, and strong 13% growth in license fees stemmed largely from an acquisition rather than internal health.