Viacom Q2 Revenue Down

NEW YORK: Viacom has reported a decrease in revenues for the fiscal second quarter of 6 percent, to $3.14 billion, with lower Filmed Entertainment revenues being partially offset by an increase in Media Networks revenues.

The Media Networks division, which includes Nickelodeon, Nick Jr., Nicktoons, MTV, Comedy Central and more, saw its quarterly revenues rise 2 percent, to $2.23 billion, thanks to a bump in advertising, affiliate and ancillary revenues. Domestic and worldwide ad revenues gained 2 percent. Domestic affiliate revenues increased 3 percent, while worldwide affiliate revenues were up 2 percent.

For Filmed Entertainment, revenues fell 20 percent, to $941 million. Worldwide theatrical revenues decreased 15 percent, facing a tough comparison against Mission Impossible: Ghost Protocol from Q2 2012. Worldwide home entertainment revenues fell 38 percent.

Operating income slipped 9 percent to $847 million, again due to lower Filmed Entertainment results, and also because of an increase in programming investments at the Media Networks. This was partially offset by higher Media Networks revenues.

Sumner M. Redstone, executive chairman of Viacom, said, "Viacom continues to build momentum by developing unparalleled entertainment content for audiences throughout the world. I am fully confident that our proven executive team will deliver even greater success, by driving Viacom’s vibrant businesses and returning outstanding value for shareholders."

Philippe Dauman, the president and CEO of Viacom, added, "Viacom’s ongoing strategy of focused investment in creative content and broad multiplatform distribution of our brands accelerated improvement in our business in the quarter. Viacom’s media networks are continuing to develop innovative new original programming for all of our audiences, and building unique experiences for our established brands that move beyond the television screen. As a result, ratings are up at several networks, and advertising revenues have returned to year-over-year growth, up two percent, with eight points of sequential improvement over the December quarter. Paramount is also executing on its strategic plan, and successfully positioned G.I. Joe: Retaliation, Hansel and Gretel: Witch Hunters and Pain & Gain for global success, and the year ahead remains strong, with audiences eagerly awaiting our upcoming tentpole releases—Star Trek Into Darkness and World War Z."