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Viacom Inc. (NASDAQ:VIA) today declared financial results for the first quarter 2010, which fell below the Zacks Consensus Estimates. Quarterly net income from continuing operations was $243 million or 40 cents per share, compared to net income of $177 million or 29 cents per share in the prior-year quarter. However, first quarter EPS of 40 cents was significantly below the Zacks Consensus Estimate of 53 cents.

Quarterly total revenue of $2,786 million was down 4% year-over-year and was also below the Zacks Consensus Estimate of $2,929 million. This was primarily due to fewer films released by Paramount movie studio and ongoing slump in DVD sales.

Quarterly operating income was $534 million, up 21% year-over-year driven by the solid performance of the Media Networks segment. At the end of the first quarter of 2010, Viacom had $358 million of cash & cash equivalent and $6,785 million of outstanding debt on its balance sheet compared to $298 million of cash & cash equivalent and $6,773 million of outstanding debt at the end fiscal 2009.

Media Networks

Quarterly revenue of $1,938 million was up 4% year-over-year. This was mainly driven by solid growth in affiliate fees and advertising sales. Worldwide affiliate revenues grew 9% in the reported quarter. Worldwide advertising revenue increased 3% from the prior-year quarter. Worldwide Ancillary revenue declined 7% year-over-year to $290 million, reflecting lower sales of Rock Band bundles. Quarterly operating profit was $684 million, up 9% year-over-year.

Filmed Entertainment

Quarterly revenue of $886 million was down 18% year-over-year. Worldwide home entertainment revenue was down 34% year-over-year. Theatrical revenue was down 6% year-over-year. Worldwide television license fees decreased 16% year-over-year. Quarterly operating loss was $86 million compare to an operating loss of $123 million in the year-ago quarter.

Source: Viacom Has a Tough First Quarter