Viacom Inc. ( VIAB ) declared
second-quarter 2013 financial results with the bottom line beating
the Zacks Consensus Estimate but the top line falling short of the
Net income from continuing operations in the reported quarter
was $481 million or 96 cents per share compared with $588 million
or $1.08 per share in the prior-year quarter. Adjusted EPS of 96
cents surpassed the Zacks Consensus Estimate by a penny.
Total revenue in the reported quarter was $3,135 million, down
6% year over year and also below the Zacks Consensus Estimate of
$3,216 million. Poor performance of the Filmed Entertainment
business resulted in the slowdown in revenues. Quarterly operating
income was $847 million, down 9% year over year.
During the reported quarter, Viacom bought 11.7 million common
shares for $700 million. At the end of the second quarter of fiscal
2013, Viacom had $1,260 million in cash & cash equivalent and
$8,915 million in outstanding debt on its balance sheet compared
with cash and cash equivalent of $848 million and outstanding debt
of $8,131 at the end of fourth quarter of fiscal 2012.
Debt-to-capitalization ratio at the end of the reported quarter was
0.56 compared with 0.52 at the end of fiscal 2012.
Media Networks Segment
Quarterly revenue of $2,233 million inched up 2% year over year,
mainly triggered by better advertising, affiliate and ancillary
revenues. Quarterly operating profit was $873 million, down 2% year
over year. Domestic affiliate revenues and worldwide affiliate
revenues rose 3% and 2%, respectively. Domestic and worldwide
advertising revenues jumped 2% year over year.
Filmed Entertainment Segment
Quarterly revenue dropped 20% year over year to $941 million,
hamstrung by lack of popular movie releases. Quarterly operating
profit was $65 million.
Global Theatrical revenue fell 15% year over year, primarily due
to poor movie releases than the year-ago quarter. Worldwide Home
Entertainment slumped 38% coupled with steep fall in television
license fees by 7%. However, Worldwide Filmed Entertainment
ancillary revenues rose 3%.
Currently, Viacom has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Certain other companies belonging to the same media sector that
are yet to report financial results are CBS
Corporation ( CBS ), The Walt
Disney Company ( DIS ) and Time
Warner Inc. ( TWX ).CBS CORP (CBS): Free Stock Analysis ReportDISNEY WALT (DIS): Free Stock Analysis ReportTIME WARNER INC (TWX): Free Stock Analysis
ReportVIACOM INC-B (VIAB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment