Viacom Inc., owner of MTV, Nickelodeon and Comedy Central, joined a parade of media companies reporting disappointing results, posting a third-quarter revenue decline that was wider than analysts had forecast.
Advertisement
Overall, Viacom produced net earnings of $591 million, or $1.47 a share, compared to $610 million, or a $1.40 a share, in the year-earlier period.
Viacom shares have decreased 32 percent since the beginning of the year. The company has received recommendation from many analysts.
Its adjusted operating income came in steady at $1.08 billion for the latest quarter. The shares opened for trading at $56.8 and hit $57.19 on the upside, eventually ending the session at $57, with a gain of 1.14% or 0.64 points. Analysts on average had expected a profit of $1.47 per share and revenue of $3.22 billion, according to Thomson Reuters I/B/E/S. Revenue fell 10.6 per cent to $3.06 billion.
Viacom Inc. (Viacom) is an entertainment content company that connects with audiences through compelling content across television, motion picture, online and mobile platforms in over 160 countries and territories.
Viacom noted that “Transformers: Age of Extinction” was released in the prior-year quarter, while this year’s summer tentpoles, “Terminator: Genisys” and “Mission: Impossible – Rogue Nation“, were widely released in the fourth quarter. Excluding the impact of currency fluctuations, revenue in the segment edged 2% higher. “Our management team is positioning Viacom for success, and I am confident that we have the strategies in place to thrive”. Viacom Inc. (NASDAQ:VIAB) has underperformed the index by 12.36% in the last 4 weeks. Our Media Networks are quickly bringing innovative data-based advertising products to market, broadening our sales capabilities and developing new solutions for marketing partners that capture the full scope and depth of our powerful multiplatform brands.
In a statement, the company pointed to the promise of some recently-launched programs, including “Lip Sync Battle” on Spike and “Scream” on MTV.
Filmed entertainment revenue dropped 44% as theatrical revenue almost halved. Finally, Barclays reaffirmed an “underweight” rating and issued a $67.00 target price on shares of Viacom in a report on Saturday, June 6th.
Advertisement
Viacom also has been renegotiating its fee deals with major pay-TV providers, seeking to guarantee that its channels will still be part of the cable bundle and aiming to secure rate increases. In the fiscal second quarter, Viacom delivered -5 percent ad revenue on -22 percent audiences (and +9 percent ad stuffing).
