Viacom sees mixed results for fiscal Q2 | Major Businesses | Business | News | Rapid TV News
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Content giant Viacom has reported gains in operating income and earnings per share for the second quarter of fiscal 2018.

viacom 26 april 2018The company reported that for the three-month period ended 31 March 2018 revenues in the second fiscal quarter decreased 3% to $3.15 billion, as segment growth in media networks was more than offset by lower filmed entertainment revenues, principally due to fewer theatrical releases and the performance of Paramount's legacy slate.

However, adjusted operating income grew 5% to $641 million in the quarter, and net earnings grew 112% to $256 million, principally due to higher operating income as well as the impact of tax reform.

"Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter,” said Bob Bakish, president and CEO at Viacom. “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.”

Despite lower revenue, Paramount returned to profitability in the quarter, and continued its momentum in April with box office hit A Quiet Place, the first film produced and released by the studio's new management team.

"At Paramount Pictures, turnaround efforts have firmly taken hold as the studio improved margins and returned to profitability,” Bakish said. “This month's outstanding box-office performance of A Quiet Place, the first film produced and released under the new team at Paramount, is a clear sign of our progress.”

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 mobile distribution deals across Europe and Asia. International strength was of particular help in its media networks division.

Media networks revenues increased 1% to $2.43 billion in the quarter, as strong international growth more than offset modest declines in domestic revenues. Worldwide advertising revenues and affiliate revenues remained flat at $1.11 billion and $1.16 billion respectively. Domestic revenues decreased 3% to $1.86 billion while international revenues grew 18% to $566 million. Excluding a nine percentage point favourable impact from foreign exchange, international revenues grew 9% in the quarter, driven by increases across all revenue streams.

Going forward, the company said that it anticipates more than $100 million in cost savings in fiscal 2018, and expects over $300 million in run-rate savings in fiscal 2019 and beyond.