Viacom reported higher second-quarter earnings as expenses declined but revenue fell. Net earnings at the US media conglomerate rose to $266 million from $121 million a year ago. Revenue fell 3 per cent to $3.1 billion.
At Viacom’s media networks unit, revenue increased 1 per cent to $2.43 billion, led by growth internationally that offset domestic declines. Domestic advertising revenue continued to fall, decreasing 3 per cent to $841 million.
“Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter,” said CEO Bob Bakish. “Our flagship brands increased audience share among important demos for the fourth consecutive quarter, and we saw sequential improvements in domestic advertising and affiliate revenue performance,” he added.
“Internationally, Viacom continued its winning streak, achieving double-digit revenue and profit gains in the quarter while expanding its global footprint through new channel launches and innovative mobile distribution deals across Europe and Asia. Our cost transformation initiatives are well under way; we anticipate more than $100 million in cost savings in fiscal 2018, and now expect over $300 million in run-rate savings in fiscal 2019 and beyond.”