Viacom dips as profits miss amid declining subscribers

Nov. 16, 2017 11:42 AM ETViacom Inc. (VIA-OLD) StockBy: Jason Aycock, SA News Editor17 Comments
  • Viacom (NASDAQ:VIA-OLD -1.9%, VIAB -4.4%) is lower after its Q4 profits fell short despite revenue gains aided in part by affiliate rate increases.
  • Operating income more than doubled to $705M on a headline basis, aided by asset sales; adjusted operating income was up 7% to $578M.
  • Adjusted net earnings from continuing operations attributable to Viacom rose 14%, to $310M. Media Networks gains were driven by worldwide advertising revenues and benefited from a 4-point favorable forex impact. Affiliate revenues were down 3% domestically as subscribers declined, partly offset by rate hikes; international affiliate fees rose 12%.
  • At the film studio, lower theatrical revenues (down 43% on a tough comp with last year's Star Trek Beyond) were more than made up by growth in licensing (up 30% to $423M).
  • Revenue by segment: Media Networks, $2.55B (up 3%); Filmed Entertainment, $789M (up 2%).
  • Cash balance was $1.39B at Sept. 30 (up $379M Y/Y); in 2017, cash from operations rose 22% to $1.67B and free cash flow rose 23% to $1.48B. Total debt outstanding as of Sept. 30 was $11.12B (down $2B since a de-leveraging plan was announced Feb. 9).
  • Press release

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