Viacom Quarterly Revenue Up 8 Percent

Viacom’s third-quarter financials show an 8-percent gain in revenues to $3.36 billion, with nice growth across the filmed entertainment and media networks segments.

Operating income was down 3 percent to $746 million, citing restructuring and programming charges of $59 million.

Media networks revenues grew 2 percent to $2.56 billion, with affiliate revenues up 4 percent to $1.19 billion and advertising revenues up 2 percent to $1.24 billion. Domestic revenues were essentially flat at $2.04 billion, and international revenues increased 8 percent to $522 million. Adjusted operating income for media networks was relatively flat at $870 million in the quarter.

Filmed entertainment saw a 36-percent lift in revenues to $847 million. Domestic revenues rose 19 percent to $388 million, while international revenues increased 56 percent to $459 million. Theatrical revenues surged 189 percent to $263 million, with revenues from current quarter releases up 199 percent compared to the prior-year period. The growth in theatrical revenues was primarily driven by the release of Transformers: The Last Knight. Domestic theatrical revenues rose 85 percent, while international theatrical revenues increased 296 percent. Licensing revenues were up just slightly at 1 percent to $300 million. Domestic licensing revenues decreased 9 percent due to the mix of titles available in the pay-TV window, while international licensing revenues grew 7 percent, reflecting higher revenues from arrangements with SVOD distributors.

Bob Bakish, the president and CEO of Viacom, said, “In the third quarter, Viacom strengthened its top line, with growth in advertising and affiliate revenues and gains across its filmed entertainment segment, while continuing to execute on a strategic plan to reinvigorate our brands, break down silos, deepen our relationships with business partners and reposition Paramount for the future.

“Among other recent successes, the company entered into an unprecedented distribution and data partnership with Altice USA, secured a significant cross-platform talent agreement with award-winning writer, director and actor Tyler Perry and recorded quarterly year-over-year ratings growth across our media networks portfolio, with strong momentum at our flagship networks, including MTV. We also further delivered our balance sheet by redeeming over $1 billion of outstanding debt and completing the sale of our substantial interest in EPIX.

“Every day we are working hard to reinvent Viacom and revitalize its brands for the future, and the early, tangible results are encouraging. There remains much work to be done, but we will continue to build on this progress for our shareholders, partners and fans.”