Viacom Q1 Profit Dips 18% on Lower Film Revenues (VIAB)

Viacom Q1 Profit Dips 18% on Lower Film Revenues (VIAB)


Media and entertainment giant Viacom, Inc. (VIAB) reported before the bell on Wednesday a decline in first quarter profits due to lower revenue, especially from the filmed entertainment division. Earnings were able to top expectations, however, revenues missed views.

The New York-based company said its second quarter profit declined to $478 million, or 96 cents per share, from $585 million, or $1.07 per share, a year ago. Analysts were expecting earnings of 95 cents per share in the quarter.

Last year’s second quarter earnings results are a tough comparison, as Viacom was still benefiting from the box office performance of blockbuster film Mission Impossible-Ghost Protocol.

Viacom’s second quarter revenues were $3.14 billion, down 6% from $3.33 billion in the same period a year ago. Putting pressure on total revenues was a 20% decline in revenue from the company’s filmed entertainment business. Analysts were expecting total revenues to be $3.18 billion for the quarter.

Despite the decline in filmed entertainment and total revenues, the owner of MTV, VH1, Comedy Central, and more saw media networks revenue grow 2%, driven by higher advertising and affiliate revenue.

Philippe Dauman, president and chief executive officer of the company said, “Viacom’s ongoing strategy of focused investment in creative content and broad multiplatform distribution of our brands accelerated improvement in our business in the quarter.”

Looking ahead, the company expects a strong summer from its Paramount film studio because of the release of blockbuster films Star Trek Into Darkness and World War Z.

Viacom shares were up $2.59, or +4.05%, during morning trading on Wednesday. The stock is up +25.42% year-to-date.

The Bottom Line
Shares of Viacom (VIAB) have a dividend yield of 1.72% based on last night’s closing price of $63.99 and the company’s annualized dividend payout of $1.10 per share.

Viacom, Inc. (VIAB) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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