Viacom shares slide after Q4 financials show mixed earnings but CEO promises a greater turnaround

Viacom shares slid overnight after a mixed Q4 earnings report.

Total revenue for the quarter ending September 30 was a slim 3% rise to $3.3 billion from $3.2 billion in the year-earlier quarter.

Net income reached $680 million, up from $432 million a year ago,

Worldwide ad results were better than expected at $936 million (they were flat last year, and were in decline for the previous three years), and the company pointed out that mainstay networks like MTV, Comedy Central and BET were showing stronger ratings of double digits.

There was also a softness in its American affiliate revenue –the money the company makes from distribution across cable, satellite and other systems slipped 3% in the U.S. to $948 million – and ongoing struggles at Paramount Pictures.

Paramount has suffered weak margins for years. But this time its losses were smaller.

Its film revenue, which includes cinema and licensing revenue rose 2% to $789 million’.

The operating loss of $43 million was encouraging compared with $137 million in the year-earlier period. The TV revenue was up triple-fold, though.

Affecting Paramount’s revenue negatively was the $59 million expense related to the collapse of Paramount’s slate financing arrangement with Huahua Media.

CEO Bob Bakish, who came on board last year, defended Paramount’s position as “integral” to the company and said he had no similar plans in response to Fox and Disney’s merger talks.

Bakish summed up: “In the fourth quarter and full year, we made strong progress against our plan to fundamentally stabilize and revitalize Viacom, with top line gains in both media networks and filmed entertainment segments driven by continued execution on our strategic priorities.

“We saw significant ratings increases across the portfolio, which drove sequential improvement in domestic advertising; our international business continues to expand, delivering double-digit revenue increases; and Paramount is demonstrating growth across multiple revenue streams as it rebuilds the theatrical slate and continues to grow its TV production business.”

“Viacom is stronger and our momentum continues to build.

“To accelerate our transition to long-term, sustainable growth, we are ramping up the evolution of Viacom’s media business to better serve next generation platforms and solutions while continuing to diversify our business and strengthen our global portfolio of flagship brands.

“In the coming year, we will continue to focus on unleashing the full creativity and energy of Viacom to create greater value for our shareholders and audiences.”