Viacom Records Q2 Loss

NEW YORK: Restructuring charges of $784 million at Viacom during the second quarter resulted in the media conglomerate reporting a net loss of $53 million, as compared with a year-ago profit of $502 million.

The company's overall revenues were down by 3 percent to $3.1 billion, delivering an operating income of $38 million. “With our strategic realignment largely complete, Viacom is in excellent position to take full advantage of the many opportunities in the rapidly evolving media environment," said Philippe Dauman, president and CEO. "The $175 million in savings to be achieved in fiscal 2015 and substantial ongoing annual benefit will allow us to move efficiently through the second half of the year and beyond.”

Media networks revenues edged up 3 percent to $2.5 billion, with gains in both advertising and affiliate fees partly offset by unfavorable currency exchange rates. U.S. ad revenues were down 5 percent, but worldwide they rose by 4 percent, reflecting an 80 percent increase in international advertising revenues driven by growth in Europe, principally from Channel 5. U.S affiliate revenues were up 5 percent, while worldwide they gained 3 percent.

The filmed entertainment segment took a 21-percent hit in revenues, which fell to $659 million, driven by declines in television license fees and home-entertainment revenues.

"We are deeply committed to investing in more and more original content, expanding in international growth markets, where we are launching networks at a rapid pace, and adapting to changes in technology and consumer behavior," Dauman said. "In the quarter, Viacom's Media Networks delivered higher advertising and affiliate revenues, and new hits like Lip Sync Battle set the stage for even more exciting, original programming across our networks. Paramount Pictures also continues to be a proven hit maker. The SpongeBob Movie: Sponge Out of Water was the first title from our brand-new Paramount Animation division and a box-office success around the world, and we look forward to the releases of Terminator Genisys and Mission: Impossible—Rogue Nation this summer."