Viacom Q4 Earnings Up

NEW YORK: Net income at Viacom for the fiscal fourth quarter was up 12 percent to $643 million, despite a 17-percent drop in revenues.

Revenues were down to $3.36 billion from the same quarter in 2011, which posted $4.05 billion. This was due in part to lower revenues from the filmed entertainment segment. Adjusted operating income was relatively unchanged, as the revenue decrease was largely offset by lower expenses.

For Q4, media networks revenues were flat at $2.29 billion, as increased affiliate fees were offset by lower advertising and ancillary revenues. Filmed entertainment revenues were down 39 percent to $1.09 billion, in part from the tough comparison with 2011’s Transformers: Dark of the Moon.

Philippe Dauman, the president and CEO of Viacom, said, "Viacom is executing on its goals of continued investment in great content, ongoing operational excellence and ever-increasing returns to shareholders. Our media networks drove value in the quarter and the year through steady growth in distribution revenues, and the production of new and engaging programming that connects with valuable audiences. Viacom’s media brands have built unrivaled connections with their fans, creating unique experiences and powerful opportunities for advertisers. We continue to invest in our future across all platforms and geographies. Paramount also continued to achieve solid margin growth in the fourth quarter and full year, and has an exciting pipeline in place with eight films in the first fiscal quarter, including Jack Reacher, DreamWorks Animation’s Rise of the Guardians and the recently released Flight.

"Viacom’s balance sheet remains strong, providing the flexibility to invest in our business while delivering capital directly to shareholders. Our shareholders received $3.4 billion in capital in fiscal 2012 through our share repurchase and dividends, and Viacom is firmly committed to achieving its strong capital return goals."

Sumner M. Redstone, the executive chairman of Viacom, added, "Viacom continues to create many of the world’s best known and most exciting media properties, and delights audiences across the globe with content for every screen imaginable. Our unparalleled creative minds and Philippe’s outstanding management position Viacom perfectly for long-term growth."