Digest: VNU addition to board
EmptyVNU Group, parent company of The Hollywood Reporter, said Monday that it will add James Kilts to its supervisory board. Kilts was vice chairman of Procter & Gamble Co. and had been CEO of Gillette Co. and of Philip Morris Cos., now Altria Group. He is the founding partner of Centerview Partners, which will make an investment in VNU alongside the company's other private-equity owners: Kohlberg Kravis Roberts & Co., Thomas H. Lee Partners, AlpInvest Partners, the Blackstone Group, the Carlyle Group and Hellman & Friedman. Details of Centerview's investment were not disclosed.
RealNetworks Inc. on Monday reported a sharply higher third-quarter profit, boosted by proceeds from the settlement of its antitrust litigation against Microsoft Corp. and commercial agreements with the software giant. Profit of $42.2 million compared with $11.2 million a year ago. Revenue rose 14% to a record $93.7 million led by a 53% gain in revenue related to the company's online games segment.
Video game maker Activision Inc. said Monday that its revenue fell 15% in its fiscal second quarter. The company did not provide profit or loss figures citing an ongoing review of its stock-option grant practices. For the latest quarter, Activision's revenue fell from $222.5 million a year ago to $188.2 million, but the result beat Wall Street expectations. The company cited solid sales for such games as "Call of Duty" and "Guitar Hero" as reasons.
Citadel Broadcasting Corp. reported lower third-quarter earnings because of higher stock compensation and radio station operating expenses, but raised its fourth-quarter revenue-growth outlook. The news boosted the stock 4.7% to $10.40. Profit of $18.4 million was down from $20.5 million on revenue that rose 2.6% to $112.5 million.