Viacom Posts Healthy Profit From Sale of USA Networks, Blockbuster Rebound

Viacom Inc. earned $558 million in the fourth quarter on a huge gain from selling its half of USA Networks, reversing a loss from the same period last year, the entertainment conglomerate said Thursday.

The company also credited a rebound in its Blockbuster video store chain, as well as strong performances from television and publishing businesses, for its improved showing.

The owner of MTV, Paramount Pictures and Nickelodeon said its earnings for the October to December quarter equaled $1.54 per share on a diluted basis. Viacom lost $242.2 million, or 68 cents per share, in last year’s fourth quarter.

Revenue rose 6%, to $3.61 billion from $3.41 billion.

Viacom recorded a $1.2-billion pretax gain from selling half of USA Networks to former partner Seagram Co. in September, using the proceeds to pay off debt.

The quarterly results felt little impact from box-office champion “Titanic,” which Paramount co-produced. The biggest moneymaker in movie history, which has grossed nearly $920 million so far, was released Dec. 19.

Viacom Class B shares rose $1.63 to a 52-week high of $45.88 on the American Stock Exchange.

Viacom said it is optimistic about 1998 given the success of “Titanic” and the planned sale of most of its Simon & Schuster publishing business. Viacom has put the non-consumer division of Simon & Schuster up for sale to focus on its faster-growing entertainment properties and reduce debt.

The company reduced its debt by $2 billion, or 21%, to less than $8 billion by year’s end.