Television

×

×

Viacom net earnings plummet on restructuring & programming charges

BENGALURU: Viacom Inc (Viacom) reported a steep decline of 60.1 percent in net earnings for the quarter ended 31 March 2017 (Q2-17, current quarter) as compared to the corresponding year ago quarter - year-on-year (y-o-y). Operating income decreased 43.3 percent y-o-y in the current quarter. The company in its earnings release says that reported operating income reflects restructuring and programming charges of $280 million resulting from the execution of new strategic initiatives, including the prioritization of six flagship brands: BET, Comedy Central, MTV, Nickelodeon, Nick Jr. and Paramount.

Net earnings attributable to Viacom for Q2-17 were $121 million as compared to $309 million in Q2-16. Operating income for Q2-17 was $332 million as compared to $586 million in the corresponding year ago quarter.

Viacom reported 8.5 percent y-o-y increase in revenue for Q2-17 at $3,256 million as compared to $3,001 million reported for the corresponding year ago quarter.

Viacom president and CEO Bob Bakish said, “In the second quarter, Viacom delivered continued top-line improvement, with growth in affiliate revenues, international media networks and across every business segment of Paramount Pictures. Additionally, we executed quickly on our strategic plan, making significant organizational changes to better focus and align Viacom’s brand portfolio and ensure strong leadership, including the appointment of Jim

Gianopulos to chart a new course at Paramount. We are working diligently to cement Viacom as a partner of choice in the industry, presenting new and reinvigorated brand strategies for our advertisers, producing creative and flexible new opportunities with our distributors and recommitting ourselves to be the home for the world’s best talent.”

“Viacom also took significant steps forward on our plan to strengthen our balance sheet, improve our leverage profile and enhance liquidity. Since the end of our first fiscal quarter, we completed a successful hybrid debt offering, redeemed outstanding debt and executed on the sale of non-core assets, including the pending sale of our stake in EPIX. There is a lot of work still to do, but we are making important changes at Viacom, taking substantial strides towards revitalizing our portfolio of brands and returning the company to consistent top-line growth,” Bakish added.

The company has two major segments – Media Networks and Filmed Entertainment.

Media Networks

Media Networks revenue for the current quarter increased y-o-y by a marginal 0.5 percent despite a 1.2 percent decline in advertising sales. The segment reported revenue of $2,394 million for Q2-17 as compared to $2,381 million in Q2-16. Adjusted operating income declined 7.2 percent to $747 million from $845 million in the year ago quarter.

Media Networks advertising revenue declined 1.2 percent y-o-y in Q2-17 to $1,109 million from $1,123 million. Worldwide advertising revenues increased 1 percent, excluding a 2-percentage point unfavourable impact from foreign exchange. Domestic advertising revenues decreased 4 percent, driven by higher pricing more than offset by lower impressions. International advertising revenues increased 11 percent. Excluding foreign exchange, which had an 11-percentage point unfavourable impact, international advertising revenues grew 22 percent. The gains in international advertising were driven by the acquisition of Telefe, which had a 17- percentage point favourable impact, and continued growth in Europe says Viacom.

Affiliate revenue in the current quarter increased 2.4 percent y-o-y to $1,156 million from $1,129 million. Domestic and international affiliate revenues increased 1 percent to $975 million and 10 percent to $181 million, respectively. The growth in domestic revenues principally reflects rate increases, partially offset by a modest decline in subscribers and a decline in revenues from SVOD and other OTT agreements. Excluding foreign exchange, which had a 4-percentage point unfavourable impact, international affiliate revenues increased 14 percent. The increase in international revenues reflected the impact of rate increases, subscriber growth and new channel launches, as well as higher revenues from SVOD and other OTT agreements. International affiliate growth included a 4-percentage point favourable impact from the acquisition of Telefe.

Ancillary revenue was flat y-o-y t $129 million. Domestic ancillary revenues decreased 8 percent to $70 million while international ancillary revenues increased 11 percent to $59 million.

Filmed Entertainment

Filmed Entertainment revenues grew 36.6 percent to $895 million in Q2-17 from $655 million, reflecting gains in theatrical, licensing, home entertainment and ancillary revenues. Domestic revenues increased 25 percent to $458 million in the quarter, while international revenues increased 51 percent to $437 million.

Filmed Entertainment segment’s adjusted operating loss narrowed to less than half $66 million from an operating loss of $136 million in Q2-16. The company says that the improvement principally reflected the various revenue increases, partially offset by higher operating expenses.

Theatrical revenues rose 10 percent to $238 million, with revenues from current quarter releases up 73 percent compared to releases from Q2-16. Domestic theatrical revenues decreased 45 percent, while international theatrical revenues grew 98 percent, reflecting the strong international performance of xXx: Return of Xander Cage. Foreign exchange had a 3-percentage point favourable impact on international theatrical revenues.

Licensing revenues increased 45 percent to $347 million in the quarter, primarily driven by Paramount Television production, as well as higher revenues from licensing arrangements with pay television and SVOD distributors. Domestic licensing revenues grew 85 percent, while international licensing revenues increased 24 percent.

Home entertainment revenues increased 29 percent to $198 million in the quarter, reflecting the number and mix of current quarter releases. Domestic and international home entertainment revenues increased 23 percent and 49 percent respectively. Foreign exchange had a 5-percentage point unfavourable impact on international home entertainment revenues.

Ancillary revenues increased 149 percent to $112 million, primarily driven by the sale of a partial copyright interest in certain current year releases related to a film slate financing arrangement. Domestic ancillary revenues increased 158 percent to $93 million while international ancillary revenues increased 111 percent to $19 million.

AlsO Read :

Viacom International buys majority stake in Youtube LATAM content producer

Nickelodeon ad sales grew 20%, launches 'Gattu Battu'

Viacom18, Star India & B4U win case against pirated streaming in US

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/21/Zee%20Kannada.jpg?itok=XUlTLr0x
Zee Kannada’s 'Jote Joteyali' garners 171% growth in primetime slot

MUMBAI: Zee Kannada’s recently launched show Jote Joteyali garnered 171 per cent of total growth in the primetime slot, according to the channel. The show was launched on 9 September, has topped the chart in Kannada television industry in fiction genre. The show is telecasted every Monday to Friday...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/ss.jpg?itok=o6tHW5k2
Star Sports launches MISSION 2020 with the Men in Blue

MUMBAI: The ‘Men in Blue’ have embarked on their quest to bring the ICC T20 World Cup Trophy home next year, beginning with the home season of cricket on Star Sports with South Africa tour of India that started on September 15th. Mission 2020 will showcase all India matches as they prepare for the...

Television TV Channels Sports
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/zee.jpg?itok=KNZ8xLWb
Zee Kannada’s Jote Joteyali launch breaks all records in the Kannada Television Industry

MUMBAI: The No. 1 Kannada General Entertainment Channel, Zee Kannada’s recently launched Jote Joteyali tops the charts in the Kannada television industry in the fiction genre. This eccentric love story garnered a total of 171% of growth in the prime slot of 8:30 PM, Monday to Friday. The record...

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/cnn.jpg?itok=O8cbHiBg
CNN International to launch new programming

MUMBAI: CNN International, which reaches more than 400 million households around the world, is launching new programming from September 24, 2019. Broadcasting live at 2.30am IST, The Brief with Bianca Nobilo will provide viewers with an incisive look at the most significant live events and stories...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/fyi.jpg?itok=uGaTFks2
FYI TV18 presents a modern dating show with a twist

MUMBAI: FYI TV18 is all set to burn up the dance-floor in its latest premiere, ‘Flirty Dancing’. Britain’s best-loved choreographer Ashley Banjo, who won ‘Britain’s Got Talent’ with his über-cool street-dancing moves, has now moved on to play cupid between strangers looking for love. With...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/nitin.jpg?itok=zg6LOcZF
Nitin Bawankule to join as Star India head of ad sales from 1 October

MUMBAI: Star India, today announced the appointment of Nitin Bawankule as the head of ad sales. In this role, Bawankule will be responsible for leading ad sales across both linear broadcast and OTT for Star TV network and Hotstar respectively. This appointment is effective 1 October 2019 and will...

Television TV Channels People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/kidz.jpg?itok=M_O_RsT1
Discovery Kids to launch animated series ‘Fukrey Boyzzz’ on 12 October

MUMBAI: Discovery Kids is all set to up the ante with the introduction of fun filled animated series ‘Fukrey Boyzzz’ based on superhit Bollywood franchise ‘Fukrey’ and ‘Fukrey Returns’. The channel will start broadcasting the series ‘Fukrey Boyzzz’ on October 12th, 2019 onwards at 1.30 PM and 7.30...

Television TV Channels Kids
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/prive.jpg?itok=X-VDYHWK
&PrivéHD celebrates two years of nuanced cinema with a special line-up of never-seen-before movies on Indian television

MUMBAI: To new emotions, new revelations, new stories and to the new beginnings! It’s celebrations galore as &PrivéHD, the premium destination for nuanced cinema, enters its third year of showcasing stories that go beyond the obvious. To commemorate this momentous occasion and the start of a...

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/09/20/jiggy.jpg?itok=K91AjITB
Dream Theatre wins Licensing Mandate for 'Little Singham'

India’s homegrown hero will now be within an arm’s reach as Dream Theatre Pvt.  Ltd., India’s foremost licensing and branding representation company, has won the mandate for licensing and merchandising for Little Singham, a show inspired by the popular Hindi film Singham. 

Television TV Channels Viewership

Sign up for our Newsletter

subscribe for latest stories