Media Networks Business Helps Lift Viacom Results

NEW YORK: For the fiscal year ended September 30, Viacom posted revenues of $13.78 billion, largely unchanged from the previous year, as higher Media Networks revenues were offset by lower Filmed Entertainment revenues.

Full-year adjusted operating income gained 5 percent to a record $4.13 billion and adjusted net earnings from continuing operations rose 3 percent to $2.38 billion. Results for the fourth quarter reflected a 9 percent increase in revenues to $3.99 billion and adjusted net earnings from continuing operations attributable to Viacom of $729 million.

For Q4, Media Networks revenues grew 8 percent to $2.66 billion, principally due to growth in affiliate fees. Domestic and worldwide affiliate revenues increased 21 percent and 22 percent, respectively, primarily due to rate increases and higher revenues related to the timing of available programming from certain distribution agreements. Domestic advertising revenues declined 5 percent, reflecting ratings challenges. Worldwide advertising revenues decreased 2 percent, reflecting the domestic decline partially offset by a 33 percent increase in international advertising revenues. Filmed Entertainment revenues grew 12 percent to $1.36 billion, due to growth in theatrical revenues. Strong results from current quarter releases and the carryover performance of Transformers: Age of Extinction drove Theatrical revenues up 226 percent to $557 million. Home entertainment revenues declined 38 percent, reflecting two fewer releases in the current quarter.

Sumner M. Redstone, executive chairman of Viacom, said, "As we conclude another fiscal year, Viacom remains well-positioned as a creative leader with many of the world's most innovative media properties and best entertainment brands."

Philippe Dauman, the president and CEO of Viacom, said, "Viacom's record financial results in 2014 demonstrate the strength of our brands and continuing momentum for our strategy of investing in creativity, with a relentless focus on growing demographic and geographic markets and embracing new distribution platforms. Our Media Networks achieved continued growth in the fourth quarter and the fiscal year. Viacom's affiliate distribution business remains a reliable engine for high-margin revenue expansion and provides significant opportunities to build new consumer experiences with long term distributors and emerging technology partners alike. Despite ratings challenges and uncertainty in the scatter advertising market at the close of the year, Viacom's advertising revenues grew in fiscal 2014, as our creative and marketing teams rolled out innovative new offerings. We also continue to take the lead in defining the next generation of measurement tools that will more fully capture the growing multiplatform engagement of our audiences. Our September acquisition of Channel 5 has already made a positive impact on our business, and points the way to further significant long-term growth of our international business. Paramount delivered the top movie of 2014 and the largest-ever theatrical release in China—Transformers: Age of Extinction—and the studio successfully launched another long-term franchise with the Teenage Mutant Ninja Turtles.

"This performance allowed us to continue the strong delivery of value directly to investors. Over the past five years, Viacom has returned $16.1 billion to shareholders."