Net profit at Viacom in Q1 fell from $537 million in the year-ago period to $321 million on revenues that were up 4 percent to $3.1 billion.
“Through strong execution of our strategic priorities, we delivered another quarter of solid financial and operational results,” said Bob Bakish, president and CEO. “Beyond the growth at our flagship networks and the resurgence of Paramount Pictures, we took a major step forward in our evolution with an agreement to acquire Pluto TV. This service will create a scaled direct-to-consumer offering for Viacom, and expand our opportunities in next-generation distribution and advanced advertising. With this momentum, we are progressing toward a return to topline growth in 2019 as Viacom continues to evolve for the future.”
At Viacom Media Networks, revenues were stable at $2.5 billion, with ad revenues falling to $1.2 billion and affiliate revenues up 4 percent to $1.2 billion. U.S. revenues came in at $1.9 billion, with ad revenues down 3 percent and affiliate revenues up 5 percent. International revenues were flat at $565 million when accounting for unfavorable foreign exchange rates.
In the filmed entertainment division, revenues were up 14 percent to $621 million, bolstered by a 49-percent increase in theatrical revenues on the heels of the Bumblebee release. The segment also delivered a 54-percent increase in ancillary revenues to $74 million, largely due to license fees from the development of Paramount-branded theme parks in Asia.