Viacom Revenues, Earnings Fall In First Fiscal Quarter 2016
February 9, 2016 at 7:21 AM (PT)
Amidst the turmoil of Chairman SUMNER REDSTONE stepping down and Pres./CEO PHILIPPE DAUMAN moving up to Executive Chairman of the company's board, VIACOM reported revenues off 6% for first fiscal quarter 2016 (ended DECEMBER 31st, 2015) to $3.154 billion. Operating income fell 10% to $839 million, while net earnings attributable to VIACOM dropped 10% to $449 million.
On the revenue side, Media Networks, including the company's cable networks, fell 3% to $2.57 billion (2% decline disregarding foreign exchange rates). Filmed Entertainment revenues fell 15% to $612 million.
DAUMAN said, “As the media industry continues to evolve quickly, VIACOM is generating sustainable opportunities using great new content, innovative technology, marketing and data applications, along with the benefits of our substantial footprint in key international growth markets. Our investments in new content have led to higher ratings at most of our networks, including VH1, SPIKE, BET, TV LAND, CMT and NICK AT NITE, as well as NICKELODEON, which recaptured its lead as the top network for kids 2 to 11. In addition, we saw significant sequential improvement in domestic advertising sales, due to the success of our new programming and our highly-desirable new advertising products. PARAMOUNT is off to a strong start in 2016, with a promising and diverse film lineup throughout the year, and our PARAMOUNT TELEVISION unit is also thriving.
"2015 was a challenging year operationally as we redesigned ourselves and adapted to significant industry disruption. Our first fiscal quarter of 2016 reflected these challenges. However, our revitalized organization and our investments in content, technology and strategic innovation are now beginning to bear fruit. Although our industry continues to face headwinds, we expect our positive momentum to continue and build throughout the year."