Viacom Inc., the parent company of MTV, Paramount Pictures and other media property said its first quarter revenue fell by 60% while its gross revenue rose by 8% on a year on year basis.
Revenue for the quarter rose to USD3,2 billion compared to USD3 billion posted for the quarter in 2016.
The company said it saw a major uptake in its filmed entertainment unit which grew revenues by 37% to $895 million, reflecting gains in theatrical, licensing, home entertainment and ancillary revenues. Also, its domestic revenues increased 25% to $458 million in the quarter, while international revenues increased 51% to $437 million.
Bob Bakish, President and Chief Executive Officer said that “In the second quarter, Viacom delivered continued top-line improvement, with growth in affiliate revenues, international media networks and across every business segment of Paramount Pictures. Additionally, we executed quickly on our strategic plan, making significant organizational changes to better focus and align Viacom’s brand portfolio and ensure strong leadership, including the appointment of Jim Gianopulos to chart a new course at Paramount. We are working diligently to cement Viacom as a partner of choice in the industry, presenting new and reinvigorated brand strategies for our advertisers, producing creative and flexible new opportunities with our distributors and recommitting ourselves to be the home for the world’s best talent.
He added that “Viacom also took significant steps forward on our plan to strengthen our balance sheet, improve our leverage profile and enhance liquidity. Since the end of our first fiscal quarter, we completed a successful hybrid debt offering, redeemed outstanding debt and executed on the sale of non-core assets, including the pending sale of our stake in EPIX. There is a lot of work still to do, but we are making important changes at Viacom, taking substantial strides towards revitalizing our portfolio of brands and returning the company to consistent top-line growth.”
