Viacom Q1 Results Slip

NEW YORK: Revenues at Viacom for the fiscal first quarter were down 16 percent to $3.31 billion, primarily due to lower movie revenues.

Media Networks revenues were down 2 percent to $2.39 billion, impacted by lower advertising revenues. U.S. and worldwide ad revenues each decreased 6 percent. In the U.S., this dip was driven by lower ratings. Filmed Entertainment revenues were down 37 percent to $975 million. Worldwide theatrical revenues fell 42 percent in the quarter to $328 million, suffering a difficult comparison to the prior year, which saw the release of Mission Impossible—Ghost Protocol. Worldwide home entertainment revenues declined 43 percent, with fewer releases in the quarter compared to Q1 2012. Television license fees decreased 24 percent to $227 million.

Net income was $470 million, compared to the $212 million reported the year before.

Sumner M. Redstone, the executive chairman of Viacom, said, “Viacom continues to build on its impressive global portfolio of movies, television programming and digital content. Philippe leads a talented executive and creative team at Viacom, and I am fully confident that by investing in new hits we will continue to build our outstanding brands and deliver strong value to shareholders.”

Philippe Dauman, the president and CEO of Viacom, added, “Throughout the quarter, we kept our focus on creative excellence and strategic programming investment. Our ongoing investments in programming continue to produce results, with positive ratings trends and growing consumer engagement in new hit content, despite difficult short-term comparisons based on the mix of film releases and the lingering effect of ratings softness last year. Our television brands continue to be highly valued by distribution partners, highlighted by our double digit organic affiliate revenue growth. Paramount is well positioned for the future, with several upcoming tentpole releases, including G.I. Joe: Retaliation, Pain & Gain, Star Trek Into Darkness and World War Z. In addition, we are working closely with existing distribution partners and new digital distributors to continue to launch robust and consumer-friendly content experiences.

“Viacom’s ability to generate significant cash flow permits us to continuously invest in our businesses and deliver value directly to shareholders through our share repurchase and dividend programs. Viacom’s strong balance sheet has provided the flexibility to tap the financing markets and lower our average cost of debt.”