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Tag: Sumner M. Redstone

  • 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’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 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.

     

  • Viacom’s revenues for the year rise 19% to $11.5 billion

    Viacom’s revenues for the year rise 19% to $11.5 billion

    MUMBAI: US media conglomerate Viacom has reported financial results for the full year and fourth quarter ended 31 December, 2006.

    For the year, revenues were up by 19 per cent to $11.5 billion. Media networks revenues rose by seven per cent to $7.24 billion, led by an increase of 11 per cent in affiliate revenues to $2.03 billion.

    Global ad revenues were up six per cent to $4.29 billion, while ancillary revenues grew two per cent to $916 million.

    Viacom executive chairman Sumner M. Redstone, said, “Viacom delivered solid results for 2006, guided by a new management team under the leadership of Philippe Dauman, who has moved quickly to put the Company back on a steady path of success. I have great confidence that we will continue to build on the momentum of the last several months both in expanding our digital horizons and continuing to grow in traditional markets.”

    Viacom president and CEO Philippe P. Dauman says, “We are making significant progress financially and operationally to ensure that we thrive in all distribution channels, including the evolving digital marketplace. Financially, our 2006 performance was strong, with double digit growth in revenues and operating income and 16 per cent growth in adjusted net earnings per share.

    “During the first quarter of this year, we took decisive steps to deploy our capital in more productive ways, including restructuring our operations here and abroad. At the same time, we continued to introduce popular new programming on our linear channels, to expand our digital operations organically and to reach innovative agreements with new digital partners. 

    Additionally, we continue to expand on our position as a leading global provider of digital wireless video, and to innovate with new online sites and experiences.”

    In 2006, acquisitions contributed $125 million in incremental revenues to media networks. The increase of 46 per cent in film revenues to $4.38 billion in 2006 from $3.00 billion in 2005 principally reflected the acquisition of DreamWorks and distribution activities for DreamWorks Animation and the DreamWorks live-action library.

    This contributed $1.36 billion to 2006 revenues. Fourth Quarter revenues of $3.59 billion grew 32 per cent from $2.72 billion in 2005. Media Networks revenues rose by four per cent in the quarter to $2.08 billion from $1.99 billion in 2005 led by growth in affiliate revenues which were up 14 per cent to $532 million. Worldwide advertising revenues rose six per cent to $1.26 billion from $1.19 billion in 2005.

    Ancillary revenues declined 15 per cent in the quarter versus 2005 to $289 million, principally due to timing and mix of home entertainment releases. Acquisitions contributed $78 million in incremental revenues to Media Networks in the quarter. Film revenues doubled to $1.57 billion, with the acquisition of DreamWorks and the distribution activities for DreamWorks Animation and the DreamWorks live-action library films contributing revenues of $560 million.