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Tag: Philippe Dauman

  • Viacom renews distribution agreement with Mediacom

    Viacom renews distribution agreement with Mediacom

    MUMBAI: Viacom has renewed its distribution agreement with Mediacom Communications for carriage of its media networks across Mediacom’s subscriber base.

     

    In addition to continued carriage of 19 Viacom cable networks and Epix, Mediacom subscribers will have access to additional programming across devices, including a substantial increase in free VOD and expanded TV Everywhere functionality that allows viewers to watch Viacom programming both in- and out-of-home.

     

    “We appreciate Viacom’s willingness to enter into a reasonable agreement that takes into consideration our consumers’ sensitivity to pricing and the alternative ways content is consumed today. Viacom has long been an innovator in the content space. We look forward to providing our customers with the very best that Viacom has to offer,” said Mediacom founder, chairman and CEO Rocco B. Commisso.

     

    “We are pleased to have reached a comprehensive deal with Mediacom that delivers strong value for our brands and provides even better ways for Mediacom customers to enjoy their favorite Viacom content. Mediacom has been an outstanding partner for many years, and we look forward to continuing to grow our businesses together,” added Viacom CEO Philippe Dauman.

  • Forex impact lowers Viacom Q2-2015 revenue

    Forex impact lowers Viacom Q2-2015 revenue

    BENGALURU:  Viacom Inc. reported three per cent increase in its Media Network revenue to $2452 million in the quarter ended 31 March, 2015 (Q2-2015, current quarter) from the $2375 million reported for the corresponding year ago quarter. The $77 million increase was more than offset by a two per cent negative impact of foreign exchange (forex) and a 21 per cent decline in revenue to $659 million in Q2-2015 from  831 million in Q2-2014. Overall, the company’s revenue in Q2-2015 declined three per cent to $3078 million as compared to the $3174 million reported for Q2-2014.

     

    The company reported a six per cent lower adjusted operating income (excluding restructuring and programming charges) of $822 million in the current quarter as compared to the $872 million in Q2-2014. Factoring in restructuring and programming charges of $784 million, the company’s adjusted operating income for Q2-2015 was just $38 million. 

     

    The company reported a loss attributable to Viacom of $210 million in Q2-2015 as compared to a profit of $502 billion in Q2-2015.

    Viacom executive chairman Sumner M. Redstone said, “Viacom’s outstanding brands deliver great entertainment content on every screen, from film to television, mobile and beyond. We have the global footprint and the expert leadership to continue our success.”

     

    Viacom president and chief executive office Philippe Dauman added, “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. 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.

     

    “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. 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,” added Dauman.

     

    During the six month period ended 31 March, 2015 (6M-2015), Viacom revenue improved slightly by 0.8 per cent to $6422 million from $6371 million in 6M-2014. Comprehensible Income attributable to Viacom for 6M-2015 was $169 million, which was less than a sixth (1/6.4 times) the $1082 reported for 6M-2014.

     

    Media Networks

    Media Networks revenues increased $77 million, or three per cent, due to higher advertising revenues in Q2-2015, driven by the acquisition of Channel 5 Broadcast Limited in September 2014, and affiliate fees, partially offset by the impact of foreign exchange. Excluding an unfavourable four per cent and two per cent impact of foreign exchange, Filmed Entertainment revenues declined 17 per cent and Media Networks revenues increased five per cent, informs Viacom.

     

    Media Networks adjusted operating income declined $46 million, reflecting an increase in programming and promotional expenses, partially offset by higher revenues. 

    Within Media Networks, advertisement revenues increased four per cent in Q2-2015 to $1172 million from $1124 million in Q2-2014, Affiliate fees improve three per cent to $1146 million in Q2-2015 from $1114 million in Q2-2014, while Ancillary revenue reduced three per cent to $134 million from $137 million in the corresponding year ago quarter.

     

    Filmed Entertainment

    The company says that lower Filmed Entertainment segment revenue was because of lower license fees and home entertainment revenues. Filmed Entertainment adjusted operating income declined $10 million due to the number and mix of available titles in the television licensing windows.

     

    Within Filmed Entertainment, Theatrical revenues went down $24 million or 10 per cent to $205 million in Q2-2015, on the back of lower mix of prior period releases and 35 per cent lower international theatrical revenues. The Sponge Bob Movie: Sponge out of water and Selma helped spike revenues up by $41 million. Worldwide home entertainment revenues decreased $63 million, or 25 per cent, to $194 million in the quarter. Revenues from current quarter titles decreased $32 million driven by the mix of releases. Domestic home entertainment revenues decreased 16 per cent and international home entertainment revenues decreased 35 per cent. Foreign exchange had a seven percentage point unfavourable impact on international home entertainment revenues.

  • Viacom takes $785 million pretax charge; announces layoffs

    Viacom takes $785 million pretax charge; announces layoffs

    MUMBAI: Viacom Inc. is planning to take a $785 million pretax charge in the second fiscal quarter of 2015 as part of a strategic realignment that includes layoffs and writing down the value of underperforming programming, including the abandonment of select acquired titles, as well as costs associated with workforce reductions.

     

    The charge also reflects accelerated amortization of programming expenses associated with a change in the company’s ultimate revenue projections for certain original programming genres that have been impacted by changing media consumption habits.

     

    The initiatives are expected to provide ongoing annual savings of approximately $350 million. The savings in fiscal 2015 are expected to be approximately $175 million.

     

    The media behemoth laid out the elements of its strategic realignment, including initiatives designed to promote greater cross-brand collaboration, focus on new growth areas, and improve operational efficiency and financial performance.

     

    Following a company-wide review across its worldwide Media Networks, Filmed Entertainment operations and corporate functions, Viacom is implementing significant strategic and operational improvements, including reorganizing three of its domestic network groups into two new organizations. The new structure realigns sales, marketing, creative and support functions, increases efficiencies in program and product development, enhances opportunities to share expertise, and promotes greater cross-marketing and cross channel programming activity.

     

    The company is also reallocating resources to expand its capabilities in critical business areas including data analysis, technology development and consumer insights, reflecting the rapidly changing media marketplace, shifting consumer behavior and evolving measurement practices.

     

    Viacom president and CEO Philippe Dauman said, “Viacom has a powerful combination of world-class brands and popular content that is driving our business across the globe. We will continue to lead the way in connecting our vibrant brands to audiences through both traditional and innovative new platforms. This strategic realignment, which is largely completed, will allow us to sharpen our focus on driving long-term growth in a rapidly changing industry. We will transition rapidly into the future, generate substantial cost savings and continue to increase our investment in original programming to bring our audiences great content in new and groundbreaking ways.”

     

    In light of these actions and previously discussed strategic acquisitions anticipated in the current fiscal year that could total approximately $400 million, Viacom will temporarily pause share purchases under its current $20 billion stock repurchase program in order to stay within its target leverage ratio. The repurchase program has returned $15 billion to shareholders since its inception in October 2010, including $1.5 billion in the first half of fiscal 2015. The company anticipates resuming stock repurchases no later than October 2015, when it begins its next fiscal year.

     

    Dauman added, “We remain steadfastly committed to returning capital to shareholders through stock buybacks as well as our ongoing dividend program. This temporary pause reflects our history of sound financial management and our commitment to operating within Viacom’s target leverage ratio.”

     

    Viacom will report results for the fiscal second quarter ended 31 March, on 30 April, 2015.

     

  • Viacom’s Media Networks revenue up 4.4 per cent; adjusted diluted EPS up 7.5 per cent

    Viacom’s Media Networks revenue up 4.4 per cent; adjusted diluted EPS up 7.5 per cent

    BENGALURU:  Viacom Inc (Viacom) reported a 4.4 per cent revenue growth for its Media Networks segment to $2654 million for its first quarter ended 31 December, 2014 (Q1-2015, current quarter) from $2541 million in the corresponding year ago quarter (Q1-2014).  ‘Adjusted operating income before tax’ from the segment dropped fractionally by 0.9 per cent to $1104 million in Q1-2015 from the $1114 million reported in Q1-2014.

     

    The company reported an 8 per cent increase in ‘adjusted diluted EPS’ of $1.29 in Q1-2015 against $1.2 reported for Q1-2015. Adjusted Net Earnings totalled $538 million (includes a loss of $24 million due to pension settlement) down 1.6 per cent from $547 million in the year ago quarter.

     

    Viacom executive chairman Sumner M. Redstone said, “Viacom’s powerful entertainment brands continue to lead the way in reaching global audiences with groundbreaking content. Our outstanding management team has positioned Viacom for continued success.”

     

    Viacom president and CEO Philippe Dauman added, “Viacom’s focus on developing popular franchise properties and constantly expanding our growing international presence drove solid top line results and record earnings per share this quarter. We continued to deliver increased revenues in our media networks operations driven by steady growth in affiliate revenues, and also benefited from Paramount Pictures’ Oscar-nominated Interstellar and our very successful company-wide franchise, Teenage Mutant Ninja Turtles.”

     

    “The media business is evolving faster than ever, but our mission remains unchanged: to continually develop more and better entertainment programming and deliver it to our engaged audiences on every screen and on every platform worldwide. To maintain our leadership position, we will continue to innovate and to manage our business as effectively and efficiently as possible, embracing change and adopting new technologies to better measure and monetize our content and meet industry-wide challenges. Viacom is financially strong and extremely well positioned for the future, with the talent and the creativity to grow our core business and continue to deliver increasing value to our investors”, informed Dauman.

     

    Results and Revenues

     

    Viacom reported a 7.9 per cent drop in profit after tax (PAT) for Viacom and non-controlling interests in Q1-2015 to $513 million (excludes a loss of $24 million due to pension settlement) from $547 million in Q1-2014. Operating income fell 2.6 per cent to $935 million from $960 million in the corresponding year ago quarter.

     

    The company’s total revenues were up 4.6 per cent in Q1-2015 to $3344 million from $3197 million in Q1-2014. Revenues from the other segment that contributes to Viacom revenues – Filmed Entertainment were up 5.7 per cent in Q1-2015 to $720 million from $681 million in Q1-2015. Adjusted operating loss from this segment fell in Q1-2015 to $60 million from $74 million in the year ago quarter.

     

    Media Networks

     

    Revenues from Viacom’s major segment – Media Networks have been reported above. Three streams contribute to Viacom’s Media Networks segment – Advertising; Affiliate fees; and Ancillary. All the three reported increase in revenue.

     

    Media Networks ‘Advertisement’ stream’s revenue in Q1-2015 at $1367 million was 3.2 per cent more y-o-y than the $1325 million in Q1-2014.  ‘Affiliate fees’ went up 6.2 per cent in the current quarter to $1132 million from $1066 million in the year ago quarter. Revenues from the ‘Ancillary’ stream increased 3.3 per cent to $155 million in Q1-2015 from $150 million in Q1-2014.

     

    The company says that domestic affiliate revenues rose 8 per cent and worldwide affiliate revenues grew 6 per cent, primarily due to rate increases. Domestic advertising revenues declined 6 per cent, reflecting lower ratings. Worldwide advertising revenues rose 3 per cent, reflecting a 60 per cent increase in international advertising revenues driven by contributions from Channel 5, which was acquired by Viacom in September 2014. The 4.4 per cent increase in Media Networks revenues includes an unfavourable 1 per cent impact of foreign exchange.

     

    Filmed Entertainment

     

    Revenues from Viacom’s Filmed Entertainment segment improved 5.7 per cent in Q1-2015 to $720 million from $681 million in the corresponding year ago quarter.  Four streams contribute to Viacom’s Filmed Entertainment segment – theatrical; home entertainment; license fees; and ancillary. While revenues from the license fees stream fell, revenues from the other three streams improved in Q1-2015 as compared to Q1-2014.

     

    Revenues from the ‘Theatrical’ stream increased 6.3 per cent to $316 million in the current quarter from $276 million in Q1-2014. The ‘Home Entertainment’ stream revenues in Q1-2015 improved by 16.2 per cent to $316 million from $272 million in the corresponding quarter of last year. As mentioned above, revenues from the License Fees stream fell 9.1 per cent to $189 million from $208 million. Revenues from the ‘Ancillary’ stream increased 9.5 per cent in Q1-2015 to $46 million from $42 million in Q1-2015.

     

    Viacom says that Teenage Mutant Ninja Turtles which was released theatrically in the fiscal fourth quarter of 2014 remained a strong performer in the current quarter, complementing the current quarter releases and helping to drive a 5.7 per cent increase in theatrical revenues and a 16.2 per cent gain in home entertainment revenues. Home entertainment revenues reflect two film releases in the current quarter, compared with none in the same prior year period. License fees declined 9.1 per cent resulting from the mix of available titles.

     

    Stock Repurchase Program

     

    For the quarter ended 31 December, 2014, Viacom repurchased 10.2 million shares under its stock repurchase program, for an aggregate purchase price of $750 million. As of 28 January, 2015, Viacom had $5.62 billion remaining in its $20 billion stock repurchase program. As of 31 December, 2014, Viacom had 407 million shares of common stock outstanding says the company.

  • Viacom releases annual Viacommunity social responsibility report

    Viacom releases annual Viacommunity social responsibility report

    BENGALURU:  Viacom Inc (Viacom) today released its annual corporate social responsibility report, ‘Viacommunity 2014 Review: Impact Creating Value.’ The report showcases the company’s investment in some of today’s most pressing issues, and its work to inspire and activate audiences to bring about positive social change. In conjunction with the report’s release, Viacom launched a powerful new series of NO MORE PSAs to raise awareness for the NO MORE movement to end domestic violence and sexual assault.

     A few highlights from the Viacommunity report include:

     Viacom committed US$ 116 million in in-kind goods and services to campaigns and non-profit partners in 2013, the same amount that would purchase 464 seats on Virgin Galactic’s commercial trips to space – or 5 copies of the Magna Carta.

     1.8 million kids, educators and parents visited the Get Schooled website during the 2013-14 school year, enough to fill every Major League Baseball stadium, and then Yankee Stadium another 11 times.

    40,000 volunteer hours were donated by Viacom employees in 2013. In that time you could watch the entire film Titanic 11,428 times.

    “Our partnership with the NO MORE movement is a prime example of Viacom’s commitment to shining a spotlight on the most important issues of the day,” said Viacom president and CEO Philippe Dauman. “I am proud to showcase this work and all of the company’s initiatives in the Viacommunity 2014 Review.”

     The new “Speechless” NO MORE PSAs, produced by Viacom Velocity and the Joyful Heart Foundation, highlight the difficulty and critical need of starting conversations around domestic violence and sexual assault.

     The NO MORE PSA campaign initially launched in September 2013 and was designed to help dispel many of the most common and pervasive myths about sexual assault and domestic violence, and to engage the public in an open dialogue about these important issues. The three-year PSA campaign, developed in partnership with Y&R, director Mariska Hargitay and world-renowned photographer Timothy White, has been rolling out across the country in local and national markets via print, broadcast, online and outdoor advertising, in movie theatres nationwide, and in major airports and medical facilities.

     

  • Viacom net profit up 2.6 per cent in FY-2014

    Viacom net profit up 2.6 per cent in FY-2014

    BENGALURU: Viacom Inc., (Viacom) reported 2.6 per cent rise in net profit to US$ 2376 million for FY-2014 (year ended 30 September 2014) from US$ 2316 million in FY-2013. Revenue in FY-2014 at US$ 13783 million was almost flat as compared to the US$ 13794 million in FY-2013.

     

    For Q4-2014 (quarter ended 30 September 2014, current quarter), Viacom reported a 1.4 per cent drop in profit to US$ 729 million from US$ 739 million in the corresponding quarter of last fiscal. Revenue in Q4-2014 at US$ 3991 million was 9.3 per cent more than the US$ 3652 million in Q4-2013.

     

    Viacom executive chairman Sumner M. Redstone said, “As we conclude another fiscal year, Viacom remains well-positioned as a creative leader with many of the world’s most innovative media properties and best entertainment brands.”

     

    Viacom president and CEO Philippe Dauman said, “Viacom’s record financial results in 2014 demonstrate the strength of our brands and continuing momentum for our strategy of investing in creativity, with a relentless focus on growing demographic and geographic markets and embracing new distribution platforms. Our Media Networks achieved continued growth in the fourth quarter and the fiscal year. Viacom’s affiliate distribution business remains a reliable engine for high-margin revenue expansion and provides significant opportunities to build new consumer experiences with long term distributors and emerging technology partners alike. Despite ratings challenges and uncertainty in the scatter advertising market at the close of the year, Viacom’s advertising revenues grew in fiscal 2014, as our creative and marketing teams rolled out innovative new offerings. We also continue to take the lead in defining the next generation of measurement tools that will more fully capture the growing multiplatform engagement of our audiences. Our September acquisition of Channel 5 has already made a positive impact on our business, and points the way to further significant long-term growth of our international business. Paramount delivered the top movie of 2014 and the largest-ever theatrical release in China – Transformers: Age of Extinction – and the studio successfully launched another long-term franchise with the Teenage Mutant Ninja Turtles.”

     

    “This performance allowed us to continue the strong delivery of value directly to investors. Over the past five years, Viacom has returned US$ 16.1 billion to shareholders,” concluded Dauman.

     

    Two main segments – Media Networks and Filmed Entertainment contribute to Viacom’s figures.

     

    Media Networks

     

    Media Networks in Q4-2014 reported 8.3 per cent higher revenue at US$ 2664 million as compared to the US$ 2460 million in Q4-2014. The segment also reported a 5.3 per cent revenue increase in FY-2014 to US$ 10171 million from US$ 9656 million in FY-2013.

     

    Operating income for Media Networks grew 5 per cent to US$ 1087 million in Q4-2014 from US$ 1035 million and increased 4 per cent to US$ 4271 million in FY-2014 from US$ 4096 million in FY-2013.

     

    The company says that Media Networks segment increased reflecting a 10 per cent increase in affiliate fees and a 2 per cent gain in advertising revenues driven by higher international advertising revenues.

     

    Filmed Entertainment

     

    Though Filmed Entertainment segment reported a 12.3 per cent increase in revenue in Q4-2014 to US$ 1357 million from US$ 1208 million in Q2-2013, for FY-2014, revenue dropped 13 per cent to US$ 3725 million from US$ 4282 million in FY-2014.

     

    Operating Income from Filmed Entertainment fell 27 per cent to US$ 213 million in Q4-2014 from US$ 291 million in Q4-2013. Operating Income in FY-2014 fell 12 per cent to US$ 205 million from US$ 234 million in FY-2013.

     

    Strong results from the current quarter releases and the carryover performance of Transformers: Age of Extinction drove Theatrical revenues up 226 per cent to US$ 557 million. Home entertainment revenues declined 38 per cent, reflecting two fewer releases in the current quarter while in FY-2014, Filmed Entertainment revenues decreased principally due to lower revenues across the distribution windows reflecting the number and mix of films says the company.

     

  • 22 Viacom channels now on Sony web TV

    22 Viacom channels now on Sony web TV

    MUMBAI: Viacom has announced a deal with Sony to make 22 of its channels including Comedy Central and MTV, available for Sony’s forthcoming over-the-top (OTT) TV service in US.

     

    The Viacom channels will be available when the new service launches, the company said in a statement. Customers also will have access to on-demand programming from Viacom.

     

    It is the first time Viacom has agreed to provide its channels for an internet-based live TV and video on demand service, the company added.

     

    Confirming the collaboration, Sony Corporation Network Entertainment Business’ group executive Andrew House said, “Viacom’s award-winning channels are a perfect match for our new service, ensuring that our customers will be able to access the shows they love on their favourite devices, when and how they choose.”

     

    “Our new cloud-based TV service will combine the live TV content people love most about cable with the dynamic experience they have come to expect from our network,” he added.

     

    Scheduled to start later this year, the service is expected to bring live TV and on-demand programming to Sony’s network of 75 million internet-enabled Sony devices in US, including PlayStation game consoles and web-connected televisions.

     

    Excited about the new alliance, Viacom president and CEO Philippe Dauman said, “Given our young, tech-savvy audiences, our networks are essential for any new distribution platform, and we’re excited to be among the many programmers that will help power Sony’s new service and advance a new era for television.”

     

    The new Sony service will give people the ability to watch shows like Spongebob Squarepants and The Daily Show without a cable subscription. Viewers will be able to access the service through Sony’s PlayStation video game console or through mobile devices like the iPad. Users will have access to live streams as well as archived shows.

     

    The 22 Viacom linear networks includes BET, CMT, Comedy Central, MTV, MTV2, Nickelodeon, Nick Jr., Nicktoons, Spike, TV Land and VH1, BET Gospel, Centric, Logo, CMT Pure Country, MTV Hits, MTV James, mtvU, Palladia, TeenNick, Vh1 Classic and Vh1 Soul and all available HD.

     

    Beyond Viacom, the service is expected to include content from other major network groups. According to media reports, Sony has held talks with Discovery Communications, Time Warner and Starz, among others, about including their networks in the new service.

  • 26.1 per cent downturn in filmed entertainment dampens Viacom Inc Q3 results 7.4 per cent

    26.1 per cent downturn in filmed entertainment dampens Viacom Inc Q3 results 7.4 per cent

    BENGALURU:  Viacom Inc. (Viacom) reported 7.4 per cent lower revenue in the quarter ended 30 June 2014 (Q3 for Viacom, or the ‘current quarter’) to USD 3421 million from USD 3693 million in the year ago quarter ended 30 June 2013. The company’s operating income dropped 5.6 per cent to USD 611 million in Q3 of 2014 as compared to the USD 647 million in Q3 of the previous year. Adjusted net earnings from continuing operations attributable to Viacom decreased to USD 618 million.

     

    Viacom’s filmed entertainment division reported 26.1 per cent drop in revenue to USD 856 million in the current quarter as compared to the USD 1158 million reported for corresponding quarter of the previous fiscal, driven by a 43 per cent decrease in theatrical revenues due to the number and timing of releases, says the company.

     

    The impact of this downturn was softened to some extent by Viacom’s media networks segment, which reported a 0.9 per cent increase in revenue in Q3 or the current year to USD 2591 million from USD 2569 million in the corresponding year ago quarter, driven by higher advertising revenues, which rose 1 per cent domestically and 2 per cent on a worldwide basis reveals Viacom. The company’s press release says that its worldwide affiliate fee revenues were flat in the quarter, as rate increases were more than offset by lower revenues from certain distribution arrangements which are affected by the timing of available programming. Excluding the impact of these distribution arrangements, the domestic affiliate revenue growth rate in the quarter was in the low double-digits.

     

    Viacom executive chairman Sumner M. Redstone said, “Viacom continues its mission to develop the world’s most exciting media brands and compelling entertainment. As the industry landscape continues to evolve, our business is very well positioned.”

     

    Viacom president and chief executive officer Philippe Dauman said, “It was a solid quarter for Viacom. We delivered nearly USD 1 billion to shareholders through buybacks and dividends and continued to build on our success in creating outstanding content and focused brands that connect deeply with audiences across all platforms. Our Media Networks distribution relationships continue to expand, providing broader opportunities for fans to enjoy Viacom’s content. Successful series and high-profile event programming on our networks create powerful experiences for audiences and valuable opportunities for advertisers, while driving industry-leading social engagement. We announced our agreement to acquire major British broadcaster Channel 5 in the quarter, which will increase our presence in an important global market. Paramount is poised for an outstanding summer, kicked off by Transformers: Age of Extinction which is already a record-setting global hit and the number one film of all time in China. In addition, the highly-anticipated Teenage Mutant Ninja Turtles premieres Friday for fans around the world.”

     

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  • Viacom to acquire Channel 5 for ?450 million

    Viacom to acquire Channel 5 for ?450 million

    MUMBAI: In what has come as big news for many, Viacom International Media Networks is all set to acquire UK based Channel 5 Broadcasting Limited for ?450 million (approximately $757 million). The announcement was made by Viacom and Northern & Shell Media Group through a press statement.

     

    The transaction brings Viacom, one of British television’s biggest brands, and the only commercial public service broadcaster to consistently grow viewership share in recent years.

     

    Under the terms of the agreement, Viacom will acquire all brands and assets of Channel 5 Limited, including: Channel 5, 5*, 5USA, Milkshake! and Demand 5.

     

    The purchase price of the acquisition will be financed by Viacom’s existing cash balances and the transaction is expected to be accretive immediately after closing. The transaction is subject to customary regulatory approvals.

     

    Channel 5’s diverse programming slate is viewed by more than 80 per cent of the UK population each month. The acquisition is set to complement Viacom’s popular pay TV networks, which connect with focused and valuable audiences.

     

    “The acquisition of Channel 5 accelerates Viacom’s strategy in the UK, one of the world’s most important and valuable media markets,” said Viacom president and CEO Philippe Dauman, through a press statement.

     

    “Channel 5’s momentum is indisputable, with impactful programming, increasing popularity and a growing digital platform. Channel 5’s management and employees have done an outstanding job building their brand and we are pleased to welcome them to our team. Viacom’s global resources, technology and expertise will help Channel 5 develop even more compelling programming and provide content to consumers in exciting new ways. In addition, we will introduce our popular content to new UK audiences and create a comprehensive offering for our commercial partners on-air and on-line,” he said.

     

    The deal will dramatically increase Viacom’s investment in content produced in the UK, “which has a widely admired public service broadcasting culture and a globally influential production sector. We look forward to partnering with local producers to introduce more UK-created content to global audiences, and will continue to explore opportunities in the UK, both in the free-to-air and pay television markets,” added Dauman.

     

    Channel 5 chief operating officer Paul Dunthorne further said, “Since Northern & Shell’s acquisition of Channel 5 in 2010, the financial and operating performance of the business has been transformed with improved audiences and content offering. The combination of Channel 5 with Viacom’s global resources, technology and expertise adds further to the momentum of the business and offers numerous exciting opportunities for the channel’s future.”

     

    The acquisition of Channel 5 builds on Viacom’s long and successful track record of investment in the UK. The company launched MTV in the market in 1987, followed by Nickelodeon in 1993 and Comedy Central in 1995, growing to more than 20 branded TV networks currently on air, including BET, VIVA and VH1. Viacom’s continued growth resulted in it being the most successful international supplier of pay TV channels to the UK market in 2013. 

  • Viacom’s Q3 revenues up 7% to $2.66 billion

    Viacom’s Q3 revenues up 7% to $2.66 billion

    MUMBAI: US media conglomerate Viacom Viacom has reported financial results for the third quarter ended 30 September, 2006.

    The company reported revenues and operating income of $2.66 billion and $655.5 million, respectively, for the quarter, compared with revenues and pro forma operating income of $2.48 billion and $744.5 million, respectively, in the third quarter of 2005.

    The seven per cent growth in revenues was driven by a 10 per cent revenue increase in the cable networks segment. Operating income however declined 12 per cent versus 2005 pro forma operating income, as a 14 per cent gain in the cable networks segment operating income was more than offset by a decline in the Entertainment segment.

    Viacom executive chairman Sumner M. Redstone said, “Considering the short time that Philippe Dauman has been in place as CEO, I am truly impressed with our solid third quarter results, particularly the performance of our well-known cable brands. I am confident that you will see further operational success in the not too distant future. Viacom will continue to expand on its creative heritage and move rapidly to the forefront of emerging digital markets, keeping us on the path to outstanding long term financial performance and free cash flow generation.”

    Viacom president and CEO Philippe Dauman said, “We achieved significant financial and operational progress in the third quarter and we remain on track to deliver on our goals for the full year. I see even greater opportunities to build for future growth as we harness Viacom’s powerful brands, popular content and unique connections with the audiences that are driving the digital revolution. Viacom is rich in the short-form content that is highly attractive to online consumers, underscored by our position as a leading entertainment content property on the Internet today with an aggregate 37 million monthly unique visitors in September.

    “We intend to continue to invest in our future and enhance profitability for the long term, as well as for the short term. We are making rapid progress and are intensifying our focus on continuing to grow our industry- leading flagship brands both here and in promising markets abroad, on accelerating the growth of our less-developed cable channels and underutilized content libraries, and on driving existing and newly created programming to audiences across every platform.

    “In addition to internal development, we will continue to apply a rigorous and selective approach to acquisitions that emphasizes coordination and execution and will add businesses in core areas that offer compelling experiences for our consumers.”

    Revenues increased by $182.3 million, or seven per cent to $2.66 billion. Cable networks segment revenues increased 10 per cent to $1.84 billion. Worldwide ad revenues at the Cable Networks segment increased by seven per cent to $1,090.1 million and affiliate fees climbed 12 per cent to $510.4 million. Cable networks segment acquisitions contributed $23.7 million of revenue growth, principally internationally, or 1.4 points of the segment’s total growth.

    The entertainment segment revenues were up one per cent or $11.9 million. DreamWorks and the distribution activities for DreamWorks Animation and DreamWorks live-action library films acquired on 31 January, 2006 contributed $279.2 million which was almost entirely offset by the box office success of War of the Worlds in the third quarter of last year. Films released in the current quarter included World Trade Center, The Last Kiss.

    The company reaffirms its full year 2006 guidance to deliver double digit revenue and operating income growth compared to 2005 revenues of $9.61 billion and 2005 pro forma operating income excluding unusual charges of $2.60 billion.