Viacom revenues down, profit flat
The filmed entertainment side of Viacom was down, and so was advertising at its media network side. However, reduced expenses kept the bottom line on an even keel, and the loss of network advertising was offset by the collection of increased carriage fees.
Revenues for the company fiscal Q4 were down 17% to $3.36B, but adjusted operating income was on par with Q4 2011 results at $1.05B. Adjusted net earnings for continuing operations enjoyed a 2% gain to $626M.
Sumner M. Redstone, Executive Chairman of Viacom, said, “Viacom continues to create many of the world’s best known and most exciting media properties, and delights audiences across the globe with content for every screen imaginable. Our unparalleled creative minds and Philippe’s outstanding management position Viacom perfectly for long-term growth.”
Added Philippe Dauman, President and Chief Executive Officer of Viacom, “Viacom is executing on its goals of continued investment in great content, ongoing operational excellence and ever-increasing returns to shareholders. Our Media Networks drove value in the quarter and the year through steady growth in distribution revenues, and the production of new and engaging programming that connects with valuable audiences. Viacom’s media brands have built unrivaled connections with their fans, creating unique experiences and powerful opportunities for advertisers. We continue to invest in our future across all platforms and geographies. Paramount also continued to achieve solid margin growth in the fourth quarter and full year, and has an exciting pipeline in place with eight films in the first fiscal quarter, including Jack Reacher, DreamWorks Animation’s Rise of the Guardians and the recently released Flight.”
Two concerns have been problems with key cable networks Nickelodeon and MTV – turnarounds are said to be in progress and working, according to Wells Fargo Analyst Marci Ryvicker.
She said results were slightly ahead of expectations, and all things considered, it wasn’t a bad quarter for the company.