Viacom Slammed, TV Posts 6% Rev Declines
Viacom had a rough fiscal first quarter 2013 down 16% in revenue -- mostly due to lower film entertainment results.
Overall, revenues sank to $3.31 billion during the period with operating income down 22% to $797 million.
Its media/TV networks witnessed a 6% decline in domestic and worldwide advertising revenues -- all due to lower ratings. Viacom's main networks include Nickelodeon and MTV Network brands. But affiliate fees were higher -- 4% domestically, and 3% internationally.
The company's networks were down 2% to $2.4 billion, with operating income down 9% to $1 billion.
Its filmed entertainment unit's revenues (theatrical, home entertainment, television) sank 37% to $975 million -- mostly from difficult comparisons to a year ago against big box-office generators "Mission: Impossible - Ghost Protocol." Home entertainment revenues were down 43% as a result of fewer releases.
Television license fees were down 24% to $227 million.
The filmed entertainment unit's operating losses increased during the period to $139 billion from $31 million.
Philippe Dauman, president and chief executive officer of Viacom, stated that despite difficult short-term comparisions, "our ongoing investments in programming continue to produce results, with positive ratings trends and growing consumer engagement in new hit content."
In mid-day trading, Viacom's stock was up nearly 1% to $62.74.