Viacom Reports YOY 1Q Revenue Down 3 Percent

Viacom delivered solid earnings growth in its fiscal second quarter, driven by gains at its international TV unit and a return to modest profitability at Paramount Pictures.

Viacom delivered adjusted earnings per share of 92 cents, well past the consensus estimate of Wall Street analysts, which came in at around 80 cents per share.

Viacom reported revenue for the quarter ended March 31 at $3.14 billion, down 3% from the year-ago quarter. Adjusted operating income was up 5% to $641 million, as international gains were enough to offset softness in domestic advertising and affiliate fee revenue.

Bob Bakish

Viacom CEO Bob Bakish hailed the results as a sign that the turnaround of the company is well under way. The fiscal Q2 results come as Viacom and its corporate cousin, CBS Corp., are tussling over the terms of a potential all-stock merger urged by controlling shareholder National Amusements.

“Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter. 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,” Bakish said.

“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 innovative mobile distribution deals across Europe and Asia. Our cost transformation initiatives are well under way; we anticipate more than $100 million in cost savings in fiscal 2018, and now expect over $300 million in run-rate savings in fiscal 2019 and beyond.”