Viacom Downgrades Q3 Forecast on Weak Ninja Turtles Performance

NEW YORK: Viacom has reduced its financial expectations for the fiscal quarter ended June 30, citing the “disappointing” theatrical performance of Teenage Mutant Ninja Turtles: Out of the Shadows as well as a delay in completing a significant SVOD agreement.

Based on preliminary information, Viacom expects to report adjusted diluted earnings per share within the range of approximately $1.00 to $1.05 for the third quarter of 2016. Analysts were projecting around $1.38 per share for the quarter.

Viacom said that the domestic performance of the latest Teenage Mutant Ninja Turtles release was “disappointing,” but that it has a strong slate in the months ahead and “looks forward to improvement at Paramount.” The company also previously expected to complete a significant SVOD agreement in the quarter, but explained that “the recent and highly public governance controversy negatively impacted the timing and its ability to achieve an optimal outcome with partners.”

Viacom expects domestic ad sales declines for the third quarter to be approximately 4 percent. The company also said it has substantially completed a very successful annual advertising upfront sales process.