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Radio Growth Called Stunted at Viacom

Radio Growth Called Stunted at Viacom

Viacom Inc., parent of Infinity as well as CBS and MTV, reported a net loss of $18.4 billion for the fourth quarter Thursday, according to It said Viacom cited charges to write down the value of holdings in radio stations and outdoor advertising. But Forbes said the results, excluding one-time items, beat Wall Street forecasts.
CEO Sumner Redstone said in a statement that the company had written down the value of its radio and outdoor holdings by $18 billion “to reflect emerging business trends and the competitive environment,” and would now “increase our investment and re-evaluate our portfolio in radio.”
Forbes reported that radio remains a profitable area of business for Viacom, “but its growth has been stunted in recent years, and the company has said it intends to trim down its portfolio of radio holdings to focus on higher-profit stations.”
Revenues from radio were flat in the latest quarter, and excluding a write-down charge, earnings from radio fell 6 percent in the quarter.
For the full year, Viacom reported a net loss of $17.46 billion or $10.19 per share, versus earnings of $1.42 billion or 80 cents per share in 2003. Full-year revenues rose 8 percent to $22.53 billion, Forbes said.