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Viacom splits for NYSE
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February 25, 1999: 10:35 a.m. ET
Media giants leaving Amex after posting 4Q results well above estimates
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NEW YORK (CNNfn) - The Rugrats and Steven Spielberg helped Viacom post fourth-quarter earnings from continuing operations well above forecasts Thursday. The news sparked the media conglomerate's announced 2-for-1 stock split and move to the New York Stock Exchange.
"We've delivered on our promises and greatly enhanced shareholder value," said Viacom (VIA) chairman Sumner Redstone in a statement about the split and move from the American Stock Exchange. "This move reflects our optimism in the company's ability to sustain its momentum in 1999 and beyond."
Viacom's fourth-quarter earnings from continuing operations of $89.8 million, or 30 cents a diluted share, was more than double the 13-cent consensus estimate of analysts surveyed by First Call. The comparison to the year-earlier earnings of $575 million, or $1.54 a diluted share, is colored by a $1.94 a share prior-year gain on the sale of a stake in USA Networks and some TV stations.
Net income for the quarter was $18.5 million, or 10 cents a diluted share, compared with $558 million, or $1.54. Earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 24 percent to $502.4 million, while revenue rose 15 percent to $3.34 billion.
Contributing to the strong results were the domestic box office receipts from "The Rugrats Movie," the international box office receipts of Spielberg's "Saving Private Ryan" and the home video sales of "Titanic." The Rugrats also played a role in bolstering EBITDA by 16 percent for Viacom's MTV Networks, which includes the Nickelodeon children's cable network.
The Showtime cable network posted a 15 percent EBITDA increase.
For all of 1998, Viacom lost $122.4 million, or 42 cents a diluted share, including charges related to its Blockbuster Entertainment unit. That compared with earnings of $793.6 million, or $2.08 a share, in 1997.
EBITDA rose 13 percent to $1.53 billion. Revenue rose 13 percent to $12.10 billion.
The stock split is payable in the form of a 100 percent stock dividend payable March 31 to holders of record on March 15. After it, the company will have 69 million shares outstanding.
The move to the NYSE is effective April 8. It will deprive the American Exchange of one of its biggest members.
Viacom stock was up 3/16 to 85-1/16 in early Thursday trading. 
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Viacom
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