For its fiscal fourth quarter ending Sept. 30, Viacom says U.S. advertising revenues declined 5%, “reflecting ratings challenges.” International advertising revenues added on 33%, helped by the acquisition of U.K.’s Channel 5.
Looking at the bigger picture, worldwide advertising revenues also dipped 2%.
Viacom executives said — as other major TV-media companies have — that the scatter advertising market remained an uncertainty. Still, the company said for the year, there was a company-wide gain of 2% for advertising revenues.
But Viacom still grew revenue from its media networks to $2.66 million— 8% — because of higher affiliate fees. Domestic and worldwide affiliate revenues increased 21% and 22%, respectively.
Stronger growth was seen from Viacom’s filmed entertainment unit — up 12% to $1.36 billion, from theatrical revenues, in particular “Transformers: Age of Extinction.” All this helped offset a 38% decline in home entertainment revenues due to fewer releases.
Operating income for its units witness Viacom’s media networks growing 5% to $1.09 billion with filmed entertainment down 27% to $213 million. Viacom’s total revenues were up 9% to $3.9 billion, with operating income gaining 5% to $1.17 million, with net earnings down 9% to $732 million.