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Viacom revenues slide

Viacom has reported financial results. Quarterly revenues declined 5 per cent to $3.79 billion. Excluding an unfavorable 3 per cent impact of foreign exchange, revenues decreased 2 per cent.

Media Networks revenues grew 5 per cent to $2.79 billion, principally due to growth in affiliate fees and international advertising revenues, partially offset by declines in domestic advertising revenues. Domestic and worldwide affiliate revenues increased 15 per cent and 10 per cent, respectively, driven by higher revenues related to the timing of programming made available under certain distribution agreements, as well as rate increases. Domestic advertising revenues declined 7 per cent, reflecting a decline in traditional television ratings. Worldwide advertising revenues decreased 1 per cent, reflecting the domestic decline partially offset by a 45 per cent increase in international advertising revenues, driven by growth in Europe, primarily by Channel 5.

Filmed Entertainment revenues declined 24 per cent to $1.03 billion, driven by the mix of this quarter’s releases compared to the prior year quarter, which included the strong performance of Transformers: Age of Extinction. Overall, theatrical revenues declined 20 per cent to $447 million. Home entertainment revenues declined 54 per cent.

Sumner M. Redstone, Executive Chairman of Viacom, said, “Viacom continues to create some of the most compelling and entertaining content in the world. I am confident that Viacom’s leadership team will continue to lead through our industry’s period of transition and succeed well into the future.”

Philippe Dauman, President and Chief Executive Officer of Viacom, added, “Viacom’s fourth quarter and year-end results are indicative of our progress in key areas, including recent ratings improvement and renewals of important distribution agreements. Our strategy of increasing and accelerating investment in original content and expanding our profitable international footprint are among the major factors driving this success, which we believe will continue in 2016 and beyond. We are making great progress in tackling industry-wide inefficiencies in audience measurement, while expanding our audience reach with landmark distribution agreements.”

Full-year revenues were $13.27 billion, a decline of 4 per cent from the prior fiscal year. Excluding an unfavorable 2 per cent impact of foreign exchange, revenues decreased 2 per cent. Media Networks revenues rose 3 per cent to $10.49 billion, reflecting a 5 per cent increase in affiliate fees and a 1 per cent gain in worldwide advertising revenues. Filmed Entertainment revenues decreased 23 per cent, principally due to lower revenues across the distribution windows reflecting the mix of films. Excluding an unfavorable 2 per cent and 4 per cent impact of foreign exchange, Media Networks revenues increased 5 per cent and Filmed Entertainment revenues declined 19 per cent, respectively.

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