Viacom’s third-quarter revenues fell by 4 percent to $3.2 billion, with net profit down by 25 percent in the period to $511 million.
Announcing the results, Bob Bakish, president and CEO, commented, “Viacom produced another quarter of strong progress, with clear evidence that our turnaround is delivering results and that our evolution into a truly global, multiplatform, brand-and IP-driven entertainment company is well underway. Paramount Pictures is revitalized, with outstanding box office performance and growing television production revenues driving substantial gains in profitability. Our Media Networks brands posted significant gains in both linear flagship share and digital consumption, in addition to sequential improvements in domestic affiliate revenue growth. In the quarter, Viacom concluded a strong advertising upfront that combined robust price increases, as well as improved packaging that included increased demand for our advanced marketing solutions. Additionally, we continued to diversify our business with growth in worldwide live event attendance and the expansion of a cross-company studio production initiative that leverages our sizable creative assets and global capabilities to drive incremental opportunities.”
Media networks revenues were $2.5 billion, down 2 percent. Worldwide ancillary revenues grew by 17 percent but ad revenues were down 4 percent to $1.2 billion and affiliate revenues slipped by 3 percent to $1.2 billion. Adjusted operating income was down 8 percent to $799 million.
Filmed entertainment revenues were down 9 percent to $772 million. While U.S. revenues were up 20 percent, international revenues fell by 33 percent. The segment saw theatrical revenues fall but licensing revenues increased by 35 percent, primarily due to the release of Paramount Television product. Adjusted operating income rose to $44 million from $9 million.