Viacom Revenues Rise In Second Quarter, But Net Earnings Fall Sharply
August 4, 2016 at 6:57 AM (PT)
VIACOM second quarter 2016 revenues rose 2% to $3.1 billion but net earnings fell 27% to $432 million ($1.09 per diluted share). Earnings were hit by a 3% revenue drop in the Media Networks division, offset by a 30% jump for the Filmed Entertainment segment. Media Networks operating income fell 22% to $872 million.
Exec. Chairman/Pres./CEO PHILIPPE DAUMAN, in the midst of legal wrangling over former Chairman SUMNER REDSTONE's ability to make decisions about the company and the attempted removal of DAUMAN and others from the board, said, “In the quarter, VIACOM continued to execute on our strategic plan by increasing investment in high-quality original content, enhancing our connection to audiences, accelerating the growth of data-driven advertising products and further expanding our unmatched global reach. Ratings increased at several of VIACOM's major networks, including NICKELODEON, NICK AT NITE, VH1 and TV LAND, and ratings trends at nearly all of our networks showed sequential improvement as we successfully completed a very strong upfront across our brands. Internationally, our media networks are driving strong double-digit revenue growth, with new channel launches, growing distribution partnerships and substantial ad sales gains. VIACOM's third quarter results were impacted by the underperformance of TEENAGE MUTANT NINJA TURTLES: OUT OF THE SHADOWS."