Viacom claims strong progress in Q3 | Major Businesses | Business
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Growth fuelled by core businesses and investments in strategic priorities and a return to increases in US advertising revenue have been the pillars of a satisfactory third quarter for media giant Viacom.
Viacom 31 july 2019
For the quarter ended 30 June 2019, Viacom posted revenues of $3.357 billion, up 3.7% on an annual basis, driving operating income of $757 million, almost identical to that at the end of the same quarter a year ago. Fir the nine months ended 30 June, total revenues had trimmed marginally, 1%, to $9.405 billion. Three-quarterly operating income had improved slightly compared with 2018 to $1.932 billion.

In the quarter, adjusted OI increased by $41 million year-on-year, up 93% annually while home entertainment revenue grew 35%, primarily benefiting from last quarter’s release of Bumblebee. Licensing revenue increased 29% driven by monetisation of the library and growth in TV production.

US advertising revenue rose 6% in the fiscal third quarter to $1.226 billion, driven by accelerating growth in Advanced Marketing Solutions (AMS). However, US affiliate revenue declined 1% annually to $1.189 billion where performance was driven by subscriber declines, partially offset by higher contractual rates and over-the-top (OTT) and studio production revenues. Affiliate revenue increased 8% benefitting said Viacom from growth in linear, as well as SVOD and other OTT deliveries.

Among the company’s media networks division’s operational highlights were that US networks continued to grow audience share as total portfolio share increased by 1% YOY. Comedy Central delivered its ninth consecutive quarter of share growth, up 6% YOY while Paramount Network earned its third straight quarter of share growth – up 11% on an annual basis. Internationally, Telefe remained top in ratings for 19 straight months, while Channel 5, Comedy Central and Paramount Network International all grew share in the quarter.

“Viacom delivered another strong quarter... a direct result of the strategy we have been executing for the last two years and the significant progress we have made in scaling advanced marketing solutions,” said Viacom president and CEO Bob Bakish commenting on the company’s third quarter results. “Paramount’s momentum also continues, keeping us on track to deliver full year profitability. As this quarter shows, Viacom’s brands are strong, our strategy is delivering, and our investments continue to position us well for the future.”