HIGH HOPES FOR 2001 MEDIA FIRMS OPTIMISTIC ABOUT THIS YEAR'S EARNINGS.

Byline: Jesse Hiestand Staff Writer

Despite posting a mixed bag of earnings Wednesday, a number of media companies remain upbeat about the coming year even as their competitors have slashed costs to offset a downturn in advertising and other revenue.

For some of the firms, earnings were tempered by ventures and experiments that didn't pan out.

Such was the case with Burbank-based Dick Clark Productions Inc.'s ``Greed,'' a prime-time Fox game show that wasn't renewed, contributing to a second-quarter loss of $338,000, or 3 cents per share. The company also said revenue of $16.5 million was 37 percent below a year ago because the year-ago quarter saw unusual, one-time business from a corporate client.

Still, President and Chief Operating Officer Francis C. La Maina expects 2001 to be another profitable year despite challenges like ``the possibility of a strike by the Writers Guild of America, increased competition from networks and softening of the advertising market as part of the general economic slowdown.''

Dick Clark stock lost 50 cents Wednesday to close at $12.25.

Viacom Inc., one of the world's largest media companies, reported fourth-quarter earnings Wednesday that, despite a 78 percent rise in revenue to a record $6.36 billion, were cut into by losses from its Internet ventures and a write-down related to its $50 billion merger with CBS.

The New York firm reported net income of $30 million in the fourth quarter, down from $133.1 million the year before. Quarterly revenue rose 5 percent to $6.35 billion.

Viacom expects modest growth in the first quarter but a 20 percent increase in cash flow for 2001.

``Considering the slow start we're having this year, we'll see if they can meet that number,'' said Edward Jones analyst Robin Diedrich. ``It will probably be tough unless the economy picks up.''

Media companies like Viacom that rely on a combination of advertising and subscription revenue should do better this year than their counterparts that more heavily rely on advertising, she said.

Viacom's stock gained 32 cents Wednesday to close at $54.03.

Santa Monica-based Metro-Goldwyn-Mayer Inc. expects a ``dramatic upswing'' in its film operations this year, with good reason. It's ``Hannibal'' set the third-largest box office opening this past weekend with an estimated $58 million.

MGM looks poised to fulfill this prediction since it has already turned around its business by aggressively licensing its video library. The company earned $50.9 million in 2000, compared with a net loss of $530,000 the year before.

And even with no standout films last year, the company said operating profit from filmed entertainment was the highest in its 76-year history.

``Last year was a transition, this year is a breakout,'' said former MGM executive and movie industry analyst Art Rockwell of Rockwell Capital Management in Burbank. ``The decks have been cleared. They have a lot of significant product in the pipeline and have overhead under control.''

The company is also doing co-production deals with other studios on big-budget films to hedge against potential losses. But that can cut both ways when a movie is successful.

``MGM's going to get a nice little pop from ``Hannibal'' but not quite as nice if it had worldwide rights to the films, instead of just the U.S. distribution,'' said David Davis, movie industry analyst for Los Angeles investment bankers Houlihan Lokey Howard and Zukin.

For the quarter, MGM reported net income of $12.3 million, or 6 cents per share, on revenue of $292.2 million, compared with net income of $15.2 million, or 8 cents per share, on revenue of $372.2 million in the fourth quarter of 1999.

MGM's stock lost 37 cents Wednesday to close at $19.73.

French media group Vivendi Universal released preliminary earnings Wednesday, with Chairman and Chief Executive Officer Jean-Marie Messier saying the company is off to a fast start. Year-end revenue in its media and communications increased by 63 percent over 1999. Full earnings are due March 9.