Viacom Q4 Revenue Down 15 Percent


NEW YORK: Viacom saw a steep decline in its fourth-quarter profit, as advertising and affiliate revenues failed to deliver.

Quarterly revenues were down 15 percent to $3.23 billion.

Media Networks revenues dipped 11 percent to $2.48 billion, with declines in affiliate and advertising revenues that were partially offset by higher ancillary revenues. Domestic and worldwide affiliate revenues decreased 19 percent and 16 percent, respectively, as there were significantly higher revenues from SVOD arrangements in the prior year quarter. International affiliate revenues increased 7 percent. Domestic advertising revenues were down 8 percent, with a decline in TV ratings at certain networks, partially offset by higher pricing. Worldwide ad revenues were also down by 8 percent, seeing a domestic decline and a 7 percent decrease in international advertising revenues.

Filmed Entertainment revenues were 24 percent lower, at $774 million, facing a tough comparison against the strong international performance of Mission: Impossible—Rogue Nation in Q4 2015. Overall, theatrical revenues declined 55 percent to $203 million. Licensing revenues were $326 million and home entertainment revenues increased 23 percent to $199 million.

Quarterly operating income was $332 million, marking a 69 percent drop from the year-ago period, and adjusted operating income was $538 million, which is 49 percent down.

Media Networks adjusted operating income was down 27 percent to $750 million, feeling the impact of the decline in revenues. The Filmed Entertainment adjusted quarterly operating loss was $137 million, compared to adjusted operating income of $122 million in the prior year—the result of a decline in revenues and a previously disclosed $115 million programming impairment charge.

Tom Dooley, Viacom’s interim president and CEO, said, “Viacom ended the 2016 fiscal year well into our transition, as the company’s industry-leading data program increased in size and sophistication, ratings stabilized at several of our key networks and Paramount has begun to rebuild a full, dynamic slate of films. In addition, our international media networks business is stronger than ever, and we will continue to broaden our footprint and apply our successful strategies to additional territories in attractive markets. With new leadership across the company, continued investments in new content, technologies and targeted acquisitions, and an expanded board of directors, I have great confidence in Viacom’s next phase, as the company explores the exciting possibilities ahead.”