Filmed entertainment drags down Viacom's Q2
DetailsJoseph O'Halloran | 01 May 2015
Even though it made notable gains in advertising and affiliate fees leading to higher media networks revenues, content giant Viacom has reported disappointing second quarter 2015 results.
viacomq2For the quarter ended 31 March 2015 Viacom posted revenues of $3.078 billion, slipping 3% year-on-year, with a net loss in the quarter of $53 million. It should be noted that the company's previously announced strategic realignment resulted in a $784 million charge. It was brighter for the six-month period, with overall first half total revenues of $6.422 billion, inching up 1% compared with 2014, lading to net earning for the half-year of $447 million.
Drilling down to which division were performing, media networks grew Q2 revenues 3% year-on-year to $2.452 billion, while for the half-year revues were $5.106 billion, up 4%. By contrast, filmed entertainment revenues crashed 21% in the quarter and dropped 9% for the six months respectively.
Undeterred by the underwhelming quarter, commenting on the results, Viacom president and chief executive officer Philippe Bauman said: "We are deeply committed to investing in more and more original content, expanding in international growth markets, where we are launching networks at a rapid pace, and adapting to changes in technology and consumer behaviour. In the quarter, Viacom's Media Networks delivered higher advertising and affiliate revenues, and new hits like Lip Sync Battle set the stage for even more exciting, original programming across our networks. Paramount Pictures also continues to be a proven hit maker.
"With our strategic realignment largely complete, Viacom is in excellent position to take full advantage of the many opportunities in the rapidly evolving media environment. The $175 million in savings to be achieved in fiscal 2015 and substantial ongoing annual benefit will allow us to move efficiently through the second half of the year and beyond."