MUMBAI: US media conglomerate Viacom has posted a consolidated revenue of $3.95 billion in the fiscal first quarter ended December, up three per cent over the earlier year. This is driven by growth in both the Media Networks and Filmed Entertainment segments.

First quarter operating income declined by two per cent to $1.02 billion, reflecting higher media networks revenues more than offset by lower filmed entertainment ancillary revenues.

However net earnings from continuing operations attributable to Viacom in the first quarter decreased by five per cent to $591 million. Diluted earnings per share from continuing operations increased to $1.06, up by four per cent over the first quarter of 2011.

Quarterly operating income of $1.02 billion decreased by two per cent, from $1.04 billion in the first quarter of 2011, driven primarily by the decline in ancillary revenues in film partially offset by the increase in media networks affiliate revenues.

Viacom president, CEO Philippe Dauman said, "In the first quarter of 2012, Viacom proved that it has the creative capability, operational resolve and financial strength to deliver for shareholders despite short term economic headwinds. Our proven strategy of continuing to invest in creative content is fueling momentum across our properties.

MTV, Comedy Central and Bet were home to many of the top rated shows in the first quarter of fiscal 2012 and Nickelodeon remained the number one cable network for kids. Despite short term softness in the overall ad markets, Viacom?s quarterly results benefited from strong affiliate fee revenue growth, as our industry-leading portfolio of TV brands continued to attract traditional distributors as well as emerging digital services."

Paramount Pictures also began the year with a strong performance in the theatrical market, with hits like Paranormal Activity 3 and Mission: Impossible ? Ghost Protocol, which has generated approximately $575 million at the worldwide box office.

Paramount is looking forward to its slate of films for the 2012 calendar year and has already made a strong start with the breakout performance of The Devil Inside, a low-cost genre film from Paramount?s Insurge Pictures label that has earned more than $50 million at the box office.

Quarterly revenues increased by three per cent to $3.95 billion from $3.83 billion in the prior year. Higher Media Networks revenues of $2.45 billion were driven by an increase in affiliate fee revenues, partially offset by a decrease in advertising and ancillary revenues.

Domestic and worldwide affiliate fees each increased by 16 per cent, reflecting higher revenues from digital distribution arrangements, as well as rate increases. Ad revenue decreased by three per cent on both a domestic and worldwide basis, driven by lower ratings and softness in the US ad market in the second half of the quarter.

Film revenues increased by four per cent to $1.56 billion, driven by higher theatrical revenues, partially offset by lower ancillary revenues due to the prior year benefit from the sale of distribution rights of two future Marvel films and lower home entertainment revenues.

Quarterly net earnings from continuing operations attributable to Viacom declined to $591 million, a decrease of 5 per cent, from $620 million in the same period last year. The change reflects the decline in operating income and lower equity income.