Viacom Results Up, But Filmed Entertainment Down1 May, 2014 By: Chris Tribbey
Paramount parent Viacom posted both higher revenue and earnings for its fiscal second quarter of 2014, despite seeing significant drops in both theatrical and home entertainment revenue.
Viacom posted revenue of $3.17 billion for the quarter ended March 31, up from $3.13 billion during the same quarter in 2013. The media company’s profit was $502 million, up from $478 million during the same quarter in 2013, and operating income was $872 million, up from $847 million the previous year.
However, Viacom’s filmed-entertainment segment was down 12% to $831 million, with home entertainment suffering the biggest drop, down 30% to $180 million. Theatrical was off 17% to $229 million. Paramount Home Media Distribution had only two major releases during the quarter — Jackass Presents: Bad Grandpa and The Wolf of Wall Street — compared with three — Paranormal Activity 4, Flight and Rise of the Guardians — during the same quarter in 2013.
The filmed-entertainment segment generated operating income of $11 million in the quarter, down from $65 million in 2013.
Viacom CEO and president Philippe Dauman said Paramount’s results should improve as 2014 continues. “Paramount kicked off its highly anticipated summer slate with the successful release of Noah at the end of the quarter, to be followed by Transformers: Age of Extinction, Hercules and Teenage Mutant Ninja Turtles in the coming months,” he noted.
“Viacom posted another strong quarter, resulting from our relentless focus on developing quality creative content and delivering it around the world in innovative ways,” he said. “Our media networks remain in high demand, commanding a premium position with advertisers and achieving significant continued growth with both traditional and emerging distribution partners.”
Domestic affiliate revenues for Viacom were up 11%, thanks to rate increases, and worldwide affiliate revenues were up 10%. Domestic advertising revenues rose 2% while worldwide advertising revenues increased 3%.