MTV parent Viacom sees Q3 net profit drop by 25%
Media conglomerate Viacom, parent company of MTV, saw its Q3 revenues drop 4% to US$3.2 billion, and net profit declining by 25% to $511 million.
Media networks revenues were at $2.5 billion, down 2% but ratings for MTV, Nickelodeon, Comedy Central and BET improved with, “significant gains in digital consumption and live event attendance.”
Worldwide ancillary revenues grew by 17% to $1.15 billion but ad revenues were down 4% to $1.2 billion and affiliate revenues down by 3% to $1.2 billion.
Adjusted operating income slipped 8% to $799 million.
“We continued to diversify our business with growth in worldwide live event attendance and the expansion of a cross-company studio production initiative that leverages our sizable creative assets and global capabilities to drive incremental opportunities,” said president and CEO Bob Bakish.
Filmed entertainment revenues were down 9% to $772 million but profits were up to $44 million compared to $9 million same period last year.
Its great global performer was Transformers: The Last Knight while the company said that current quarter releases as A Quiet Place and Book Club were travelling well.
US revenues grew 20% but international revenues fell by 33%.
Financials for this sector had licensing revenues grow 35 % primarily due to the release of Paramount Television product, but theatrical revenues shrunk.
Bakish remained upbeat and confident of the company’s ability to turn around profits.
“Viacom produced another quarter of strong progress, with clear evidence that our turnaround is delivering results and that our evolution into a truly global, multiplatform, brand-and IP-driven entertainment company is well underway,” he said.
“Paramount Pictures is revitalized, with outstanding box office performance and growing television production revenues driving substantial gains in profitability.
“Our media networks brands posted significant gains in both linear flagship share and digital consumption, in addition to sequential improvements in domestic affiliate revenue growth.”