Viacom Revenue Up, Earnings Down For Fiscal Q1 As Company Announces New Focus On Six Brands

Changes Coming

VIACOM first quarter fiscal 2017 revenue rose 5% to $3.324 billion but net earnings fell 12% to $396 million ($1 per diluted share) as the company disclosed changes to its cable networks in response to sluggish business.  MEDIA NETWORKS revenues increased 1% to $2.59 billion (3% excluding the effect of foreign exchange rates); Domestic revenues were flat at $2.06 billion, and international revenues grew 5% to $534 million.

The changes coming to the company include a focus on six "flagship brands," BET, COMEDY CENTRAL, MTV, NICKELODEON, NICK JR. and PARAMOUNT, including rebranding and reformatting SPIKE TV as the general-entertainment "PARAMOUNT NETWORK" in 2018 and realigning other brands (like VH1 and TV LAND) to reinforce the primary brands.  The TV brands will be used as co-brands for PARAMOUNT films, including a four-picture slate of NICKELODEON-PARAMOUNT films to be released starting in 2018 with accompanying TV series.

President/CEO BOB BAKISH said, "Today we share a strategy that will enable VIACOM to realize the full potential of its premier global portfolio of entertainment brands. Building on our leading domestic and growing international footprint, this strategy will expand the depth and reach of our flagship brands across multiple platforms and around the world, while also providing for more competitive differentiation and increased adaptability for our business overall. There is much work to be done, but we are confident we have the plan and people to take our brands to greater heights and build a bright future for our company.

“VIACOM’s first quarter results reflect improvement in our core businesses, with increases in revenues and operating cash flow, continued strong international performance, including initial contributions from the acquisition of TELEFE, and a return to positive growth in affiliate revenues. We are already benefiting from changes made early in the second quarter and seeing green shoots in our strongest businesses, as well as those that are poised for a turnaround. As we implement our strategy across the company, we believe we can drive significant value for shareholders.”

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