Quarterly Earnings Rise at Viacom

NEW YORK: Viacom reported a 20-percent increase in net income for its fiscal third quarter, lifted by higher affiliate fees at its cable channels and an increase in ad revenues.

For the period ended June 30, operating income was $1.09 billion. Revenue increased 14 percent to $3.69 billion, with higher revenues in both the Media Networks and Filmed Entertainment segments.

Media Networks revenues, which includes Nickelodeon, Nick Jr., Nicktoons, MTV, Comedy Central and more, grew 13 percent to $2.57 billion. Affiliate revenues were up 28 percent domestically and 26 percent worldwide, thanks to the benefit of digital distribution agreements and rate increases. Domestic ad revenues rose 6 percent, due in part to ratings increases, and worldwide ad revenues were up 5 percent.

In Filmed Entertainment, revenues increased 15 percent to $1.16 billion. Worldwide theatrical revenues were up 64 percent to $454 million, mainly because of carryover revenues from its March 2013 releases. The gain was also helped by the strong performance of Star Trek Into Darkness, World War Z and Pain and Gain. Worldwide home entertainment revenues were down 10 percent, meanwhile, mainly due to lower carryover revenues.

Viacom also announced that it was doubling its stock repurchase program to $20 billion.

Sumner M. Redstone, executive chairman of Viacom, said, "Viacom’s strong results in the quarter once again demonstrated the value of our world-leading brands, global reach and devoted audiences. With an improving economy, Viacom is poised for continued success."

Philippe Dauman, the president and CEO of Viacom, said, "Viacom’s aggressive investment in content, outstanding operational execution and fiscal discipline helped deliver a strong quarter with double-digit revenue and profit growth. Domestic advertising revenue gains continued to accelerate at our Media Networks, as new, original programming drives improving ratings momentum. Viacom is also expanding partnerships with traditional cable operators and new digital distributors to deliver solid affiliate revenue gains. In a crowded summer season, Paramount’s tentpoles—Star Trek Into Darkness and World War Z—achieved critical and box office success, and the studio has a promising slate remaining through calendar 2013 and beyond.

"The significant expansion of Viacom’s stock repurchase program highlights the confidence we have in our business and the value of Viacom’s stock. We will continue to focus on maintaining a strong and flexible balance sheet, which supports robust investments in our brands and franchises as well as substantial capital return to shareholders."