Big-spending Viacom reports steady Q2 revenue
Michelle Clancy | 02-05-2014
Content giant Viacom has reported revenue of $3.17 billion for the fiscal second quarter of 2014, ended 31 March.
That's an increase of just 1%, reflecting higher affiliate fees and advertising revenues, but partially offset by declines in filmed entertainment. And the news comes hot on the heels of the announcement
that it will acquire Channel 5 for $760 million.
Operating income rose 3% to $872 million, primarily due to higher media networks revenues. Adjusted net earnings from continuing operations attributable to Viacom increased to $482 million, and adjusted diluted earnings per share from continuing operations were up 13% to $1.08 per diluted share.
"Viacom posted another strong quarter, resulting from our relentless focus on developing quality creative content and delivering it around the world in innovative ways," said Philippe Dauman, president and CEO of Viacom. "Our media networks remain in high demand, commanding a premium position with advertisers and achieving significant continued growth with both traditional and emerging distribution partners. In addition, Paramount kicked off its highly-anticipated summer slate with the successful release of Noah at the end of the quarter, to be followed by Transformers: Age of Extinction, Hercules and Teenage Mutant Ninja Turtles in the coming months."
In the first half of the fiscal year, Viacom also returned another $2 billion to investors through its share buy-back and dividends.
Media networks revenues increased 6%, to $2.38 billion in the quarter. Domestic affiliate revenues grew 11%, driven by rate increases, and worldwide affiliate revenues increased 10% in the quarter. Domestic advertising revenues increased 2%, and worldwide advertising revenues increased 3% to $1.12 billion in the quarter.
Filmed entertainment revenues declined 12% to $831 million, primarily due to lower carry-over revenues from prior period releases. Theatrical revenues decreased 17% from the prior year, as strong domestic carry-over revenues from The Wolf of Wall Street were more than offset by lower international theatrical revenues. Worldwide home entertainment revenues also decreased 30%, primarily driven by fewer current quarter releases and a decrease in carry-over revenues.