Viacom Q1 Profit Rises 16%, Beats View; But Revenues Miss

(RTTNews) - Media conglomerate Viacom, Inc. (VIA, VIAB) on Thursday reported a 16 percent increase in profit for the first quarter from last year, as lower revenues at the Filmed Entertainment segment were more than offset by a decline in the company's operating expenses.

Adjusted earnings per share beat analysts' expectations, while quarterly revenues missed their estimates.

New York-based Viacom, which owns MTV, Nickelodeon, Paramount Pictures and Comedy Central, said that net earnings attributable to the company for the first quarter rose to $547 million or $1.20 per share from $470 million or $0.92 per share in the previous-year quarter.

The prior-year quarter's results included discrete tax benefits of $12 million or $0.02 per share, principally reflecting the release of tax reserves with respect to certain effectively settled tax positions.

Adjusted earnings from continuing operations for the quarter were $547 million or $1.20 per share, compared to $461 million or $0.91 per share in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.16 per share for the quarter. Analysts' estimates typically exclude special items.

However, total revenues for the quarter declined 4 percent to $3.20 billion from $3.31 billion in the year-ago period. Analysts had a consensus revenue estimate of $3.30 billion.

Higher revenues at Media Networks were more than offset by declines in the Filmed Entertainment segment.

Filmed Entertainment revenues for the quarter declined 30 percent from the year-ago period to $681 million. Within the business, worldwide home entertainment revenues declined 37 percent. Worldwide theatrical revenues dropped 52 percent from the prior year, due to fewer titles released in the quarter and lower carryover revenues.

In Media Networks, which includes channels MTV, Nickelodeon and Comedy Central, revenues increased 6 percent from last year to $2.54 billion, driven by increases in affiliate fees and advertising revenues.

Affiliate revenues for the quarter grew 10 percent on a domestic and worldwide basis, primarily due to rate increases. Domestic advertising revenues increased 3 percent due to favorable ratings trends. Worldwide advertising revenues rose 4 percent to $1.33 billion in the quarter.

Philippe Dauman, president and chief executive officer of the company said, "Our Media Networks continue to lead on television while also pioneering new, multi-screen experiences for users and expanded opportunities for advertising and distribution partners."

Dauman added, "With high profile films this quarter in Anchorman 2: The Legend Continues, Jackass Presents: Bad Grandpa, Nebraska and Wolf of Wall Street, Paramount is off to a strong start as the studio continues building its animation and television production capabilities alongside a promising slate for fiscal 2014."

Viacom's total expenses for the quarter declined 11 percent to $2.24 billion from $2.52 billion in the same period last year. Of this, operating expenses declined 16 percent to $1.47 billion.

In Thursday's regular session, VIA is trading at $83.27, up $2.18 or 2.69 percent on a volume of 8,049 shares.