Profits up but revs slip in Viacom Q2

Profits up but revs slip in Viacom Q2 Details Editor | 12 May 2019 As it continues on what it calls its evolution, media giant Viacom has reported a second quarter showing revenues hitting headwinds while still posting a rise in profits after noticeable falls in operating expenses. For the second quarter of its financial year ended 31 March 2019, Viacom reported total revenues of $2.96 billion, down 6% on an annual basis lading to a total of $6.048 billion for the half year, itself slipping 3% year-on-year. Operating income for the quarter was $573 million, rising 26% compared with Q1 2018, and for the half year Viacom operating income was $1.175 billion, almost identical to the previous year. Looking at business segments, home entertainment revenue for the quarter was $154 million, slipping 6% annually, while licensing revenues tumbled 34% year on year to $315 million. Viacom said that licensing revenue was primarily impacted by the timing of TV production availabilities and comparisons to 2018 direct-to-SVOD release of certain films. Media Networks revenue decreased 7% compared with Q1 2018 to $2.267 billion. Adverting revenues in this sector were pegged back by the same percentage to $1.033 billion while affiliate fees fell 6% annually to $1.139 billion. Viacom noted that domestic advertising revenue growth rate improved for the second quarter, driven by accelerating growth in Advanced Marketing Solutions (AMS) where takings were up 76% in the quarter compared with 54% in Q1, benefiting from the integration of Pluto TV. US affiliate revenue declined due to SVOD library licensing, which was halted while finalising Pluto TV