Viacom Q3 Profit Down

NEW YORK: Viacom reported a profit for Q3 that was down 27 percent from the last year, while quarterly revenue was up 2 percent.

Revenues for the third quarter were $3.1 billion, as gains in filmed entertainment more than offset a decrease in media networks revenues. Quarterly net earnings attributable to Viacom decreased to $432 million and adjusted net earnings declined to $419 million.

Media networks revenues were $2.5 billion, down 3 percent. Domestic advertising revenues decreased 4 percent, with pricing increases more than offset by softer ratings at some of the networks compared to the previous year. International ad revenues were up 13 percent, led primarily by growth in Europe. Absent an adverse 6 percent impact of foreign exchange, international advertising revenues increased 19 percent. Domestic affiliate revenues decreased 10 percent, facing a difficult comparison with the timing of revenues from certain distribution agreements in the prior year. International affiliate revenues were up 9 percent, and absent an adverse 3 percent impact of foreign exchange, international affiliate revenues increased 12 percent.

Filmed entertainment revenues gained 30 percent to $621 million, driven by gains in license fees and theatrical revenues. Worldwide theatrical revenues increased to $91 million in the quarter, reflecting the June release of Teenage Mutant Ninja Turtles: Out of the Shadows. License fees were up 39 percent to $297 million in the quarter, thanks in part to the licensing of certain titles for SVOD services and revenues from Paramount Television productions.

Philippe Dauman, executive chairman, president and CEO of Viacom, said, “In the quarter, Viacom continued to execute on our strategic plan by increasing investment in high-quality original content, enhancing our connection to audiences, accelerating the growth of data-driven advertising products and further expanding our unmatched global reach. Ratings increased at several of Viacom’s major networks, including Nickelodeon, Nick at Nite, VH1 and TV Land, and ratings trends at nearly all of our networks showed sequential improvement as we successfully completed a very strong upfront across our brands. Internationally, our media networks are driving strong double-digit revenue growth, with new channel launches, growing distribution partnerships and substantial ad sales gains. Viacom’s third quarter results were impacted by the underperformance of Teenage Mutant Ninja Turtles: Out of the Shadows.”