US media conglomerate Viacom's revenues for the first quarter
ended 31 December 2012 have fallen by 16 per cent to $3.3
billion from $3.9 billion in the same period last year. The
reason was lower revenues from the film division as a result
of the schedule of releases.
income and adjusted net earnings from continuing operations
attributable to Viacom declined by 22 per cent to $797 million
and $461 million, respectively, reflecting lower film results
and a decline in Media Networks ad revenues, partially offset
by increased affiliate revenues. Adjusted diluted earnings
per share from continuing operations decreased by 14 per cent
to $0.91 per diluted share.
Networks revenues decreased by two per cent to $2.39 billion.
Domestic and worldwide ad revenues each decreased by six per
cent. The decline in domestic ad revenues was driven by lower
ratings. Domestic affiliate revenues increased by four per
cent. Excluding the impact of digital distribution arrangements,
which are affected by the timing of available programming,
the domestic affiliate revenue growth rate was in the low-double
digits. Worldwide affiliate fees increased by three per cent.
Entertainment revenues were down by 37 per cent to $975 million.
Worldwide theatrical revenues decreased by 42 per cent in
the quarter to $328 million, principally reflecting the difficult
comparison against the prior year release of 'Mission: Impossible
- Ghost Protocol', as well as the year over year comparison
of revenue from third-party theatrical releases. Worldwide
home entertainment revenues declined 43%, principally resulting
from fewer releases in the quarter compared to the first quarter
of 2012. The decline in home entertainment revenues also reflects
lower carryover revenues from the prior period release of
'Transformers: Dark of the Moon'. Television license fees
decreased by 24 per cent to $227 million in the quarter.
executive chairman Sumner M. Redstone said, "Viacom continues
to build on its impressive global portfolio of movies, television
programming and digital content. Philippe leads a talented
executive and creative team at Viacom, and I am fully confident
that by investing in new hits we will continue to build our
outstanding brands and deliver strong value to shareholders."
president, CEO Philippe Dauman said, "Throughout the
quarter, we kept our focus on creative excellence and strategic
programming investment. Our ongoing investments in programming
continue to produce results, with positive ratings trends
and growing consumer engagement in new hit content, despite
difficult short-term comparisons based on the mix of film
releases and the lingering effect of ratings softness last
year. Our television brands continue to be highly valued by
distribution partners, highlighted by our double digit organic
affiliate revenue growth. Paramount is well positioned for
the future, with several upcoming tentpole releases, including
G.I. Joe: Retaliation, Pain & Gain, Star Trek Into Darkness
and World War Z. In addition, we are working closely with
existing distribution partners and new digital distributors
to continue to launch robust and consumer-friendly content
ability to generate significant cash flow permits us to continuously
invest in our businesses and deliver value directly to shareholders
through our share repurchase and dividend programs. Viacom's
strong balance sheet has provided the flexibility to tap the
financing markets and lower our average cost of debt."