Viacom Third Quarter Profits Slip Due to Fewer Film Releases

Viacom Third Quarter Profits Slip Due to Fewer Film Releases

The media giant saw revenues slip 7 percent compared to last year

Led by a 43 percent dip in theatrical revenue, Viacom reported a seven percent dip in overall revenue in the fiscal third quarter, down to $3.4 billion. Income remained stable at $1.086 billion, nearly the same as the third quarter of 2013, though net income fell five percent.

Overall, earnings per share rose 10 percent to $1.42 thanks to stock buybacks, though net earnings dropped from $642 million to $610 million. Earnings missed analysts’ estimates by one to two cents.

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The media giant saw filmed entertainment fall from $1.158 billion in revenue to $856 billion, a significant fall, though its adjusted operating income went up by $38 million, thanks to the lower film and distribution expenses.

In a sense, it was a matter of bad timing for Viacom; soon after the quarter ended, it unleashed the latest movie in its “Transformers” franchise unto the world. It has taken in over $1 billion worldwide.

Also read: Viacom CEO Philippe Dauman's Compensation Jumped 11% in 2013

“It was a solid quarter for Viacom. We delivered nearly $1 billion to shareholders through buybacks and dividends and continued to build on our success in creating outstanding content and focused brands that connect deeply with audiences across all platforms,” said Viacom president and CEO Philippe Dauman.

Helping to float Viacom's quarterly numbers was a slight rise in media networks income, which hopped one percent to $2.59 billion.