Nickelodeon Tops Ratings, Supporting Viacom's $60 Value

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According to a company press release, Viacom's ( VIA ) kid focused channel Nickelodeon ended up being among the top cable networks in Q2 2011, an arena in which companies like Time Warner ( TWX ), Disney ( DIS ) and News Corp ( NWS ) have significant presence. This performance was led by programs such as iCarly. The company also states that this was 65th consecutive quarter when Nickelodeon's stood as basic cable's top total day network with kids in the range of 2-11 years as well as among total viewers. This certainly begs the question, is Nickelodeon important to Viacom & assuming so, then how much?

The answer to the first question is yes. We estimate that this single channel contributes about 16% to Viacom's stock.

This is a result of two factors. One, the channel earns a dual-stream of revenue including subscriber fee and advertisement fee. Secondly, it has a very high penetration in the U.S. owing to its popularity among kids.

Our price estimate for Viacom's stock stands at $60 , slightly above the market price.

See our complete analysis for Viacom's stock.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: DIS , NWS , TWX , VIA

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