Viacom hits record profit high for June quarter
| 07 August 2015
Contributing to the rush of pay-TV results, Viacom has posted a 4% increase in adjusted diluted earnings per share to $1.47, a record high for the June quarter.
Quarterly revenues declined 11% to $3.06 billion due to lower theatrical revenues in filmed entertainment, which scheduled no wide theatrical releases in the quarter.
Executives were nonetheless bullish: "Viacom is meeting the challenges of a rapidly-changing media landscape by creating exciting, unique content that connects with audiences on all platforms," said Sumner Redstone, executive chairman of Viacom. "Our management team is positioning Viacom for success, and I am confident that we have the strategies in place to thrive."
Media networks revenues increased $6 million to $2.60 billion, primarily due to higher affiliate fees. Absent an unfavourable 2% impact of foreign exchange, media networks revenues increased 2%. Worldwide and domestic affiliate revenues rose 2%, driven by rate increases.
"Our media networks are quickly bringing innovative data-based advertising products to market, broadening our sales capabilities and developing new solutions for marketing partners that capture the full scope and depth of our powerful multiplatform brands," said Philippe Dauman, president and CEO of Viacom. "We introduced several popular new series in the third quarter, including Lip Sync Battle and Scream and expanded agreements with important distribution partners. Paramount also set the stage for the return of one of the studio's most successful franchises, Mission: Impossible, and is anticipating the broadcast premiere of the first Paramount Television production, Minority Report, next month."
Domestic affiliate revenues grew in the mid-single digits. Domestic advertising revenues decreased 9%, due to a decline in traditional ratings. Worldwide advertising revenues decreased 2%, which reflects a 58% gain in international advertising revenues driven principally by UK broadcaster Channel 5, the company said.