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Viacom Q3 Profit Tops View, But Revenues Miss


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(RTTNews.com) - Viacom Inc. (VIAB, VIA) reported profit for the third quarter of fiscal 2018 that declined 23.6 percent from last year, reflecting the gain on sale of an investment in EPIX in the prior year quarter. Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.

Bob Bakish, President and Chief Executive Officer, said, "Viacom produced another quarter of strong progress, with clear evidence that our turnaround is delivering results and that our evolution into a truly global, multiplatform, brand- and IP-driven entertainment company is well underway. Paramount Pictures is revitalized, with outstanding box office performance and growing television production revenues driving substantial gains in profitability."

Net earnings attributable to the company for the third quarter decreased 23.6 percent to $522 million from the prior year's $683 million, with earnings per share declining to $1.29 from $1.70 last year.

Operating income grew 1% to $752 million, principally driven by a restructuring charge in the prior year quarter and improvement in Filmed Entertainment operating results. Adjusted operating income decreased 5% to $767 million in the quarter.

Net earnings from continuing operations attributable to Viacom declined to $511 million from last year's $680 million, primarily due to the gain on sale of an investment in EPIX in the prior year quarter. But, adjusted net earnings from continuing operations attributable to Viacom increased 1% to $475 million in the quarter.

Adjusted earnings per share from continuing operations rose to $1.18 from $1.17 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.07 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter decreased 4% to $3.24 billion from $3.36 billion last year. Wall Street analysts had a consensus revenue estimate of $3.26 billion for the third-quarter.

Media Networks revenues decreased 2% to $2.50 billion in the quarter, as a 17% increase in worldwide ancillary revenues to $158 million was more than offset by a 4% decrease in worldwide advertising revenues to $1.19 billion and a 3% decrease in worldwide affiliate revenues to $1.15 billion. Domestic and international revenues each declined 2% in the quarter to $1.99 billion and $509 million, respectively. Excluding a 2-percentage point unfavorable impact from foreign exchange, international revenues were flat in the quarter.

Filmed Entertainment revenues decreased 9% to $772 million in the quarter, as a 20% increase in domestic revenues to $464 million was more than offset by a 33% decline in international revenues to $308 million.Theatrical revenues were down 21% to $208 million principally due to lower carryover revenues.

Domestic theatrical revenues grew 58%, driven by the strong performance of current quarter releases A Quiet Place and Book Club, while international theatrical revenues decreased 58%, reflecting comparisons against the release of Transformers: The Last Knight and Ghost in the Shell in the prior year quarter.

In the Thursday's Pre-Market trade, VIAB is trading at $28.88, up $0.26 or 0.91 percent.


Read the original article on RTTNews (http://www.rttnews.com/2925236/viacom-q3-profit-tops-view-but-revenues-miss.aspx)


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