Viacom Inc. reported some of the weakest domestic advertising and viewership results among media companies this week, fanning the flames of an industrywide stock meltdown amid questions about the future health of the TV ecosystem. The company said U.S. advertising revenue fell 9% due to declines in TV ratings.
Advertisement
However, adjusted earnings per share for the quarter matched analysts’ expectations, while revenues missed their estimates. All this comes from continued double-digit percentage ratings declines at its TV networks.
Viacom Inc. (NASDAQ:VIA) will next issue their quarterly earnings announcement on 2015-08-06. Those fears haven’t left Wall Street a day later.
The company did suffer as well from a dip in U.S.ad revenue. In 2014, this period included global blockbuster Transformers: Age of Extinction.
“Net profit from continuing operations attributable to Viacom fell to $591 million, or $1.47 per share, in the quarter ended June 30 from $611 million, or $1.40 per share, a year earlier”, Reuters reports. “Mission Impossible” with Cruise was released during the current quarter, so that movie wasn’t in a position to help. In September 2013, Telecom Italia Media SpA announced that the sale of the 51% stake of MTV Italia Srl to Viacom Inc. has been completed.
Profit in the quarter fell to $US591 million from $US610 million. In Thursday morning trading, Viacom’s stock tumbled another 15% to about $42 a share. 2 analyst has also rated it as a strong sell. The next major contract negotiation looming is Dish Network Corp., which has been clear about its opposition to rising fees charged to carry channels. During last 3 month period, 0.2% of total institutional ownership has changed in the company shares.
With syndicated and acquired shows performing less than in the past, Dauman said “across the company, we have never spent more money on original programming as we do today”.
Filmed entertainment revenue dropped 44% as theatrical revenue almost halved.
For the April-June quarter, Viacom noticed its income slide 11% in comparison with the year-earlier interval.
Advertisement
Viacom Inc. (Viacom) is an entertainment content company that connects with audiences in over 160 countries and territories and creates compelling television programs, motion pictures, short-form video, applications (apps), games, consumer products, social media and other entertainment content. The Company operates through two segments: Media Networks and Filmed Entertainment.
