Viacom Q3 Earnings Top Wall Street Expectations as CBS Merger Looms
Media company posts ad revenue growth for the first time in 20 quarters
Tim Baysinger | August 8, 2019 @ 4:10 AM
Last Updated: August 8, 2019 @ 6:32 AM
Viacom's logo on the iconography of a dollar bill
With its anticipated re-coupling with CBS casting a shadow, Viacom reported third quarter earnings that beat Wall Street forecasts on Thursday.
For the three months ending on June 30, the film and TV conglomerate reported revenue of $3.36 billion and an adjusted diluted earnings-per-share of $1.33. Media analysts had forecast earnings per share (EPS) of $1.06 and $3.33 billion in revenue, according to a Yahoo Finance-compiled consensus.
In the year-ago period, Viacom reported revenue of $3.24 billion and an EPS of $1.18.
“Viacom delivered another strong quarter, as our core businesses and investments in strategic priorities fuel our growth and evolution. Importantly, we returned Domestic Advertising Revenue to growth, which is a direct result of the strategy we have been executing for the last two years and the significant progress we have made in scaling Advanced Marketing Solutions,” said Viacom CEO Bob Bakish. “Paramount’s momentum also continues, keeping us on track to deliver full year profitability. As this quarter shows, Viacom’s brands are strong, our strategy is delivering, and our investments continue to position us well for the future.”
Paramount, which was led by films “Rocketman” and “Pet Sematary” in the quarter, is on track for full year profitably in the 2019 fiscal year.
Like the major broadcast networks, Viacom saw a better-than-expected upfront ad sales marketplace, with high-single to double-digit price increases, which Viacom said was its highest rate of change in over a decade. Viacom overall was up 6% in domestic ad revenue, its first time it saw an increase in the last 20 quarters.
Pluto TV, which Viacom acquired in January, helped to drive gains for Viacom’s digital ad sales. Bakish said the streaming platform now has 18 million monthly average users, up from 12 million at the beginning of this year.
Viacom is in the middle of negotiations with CBS to re-join as one combined company under Bakish. A merger would represent a homecoming since the two companies operated as one until being split off in 2005.
The two companies had informally viewed Thursday as a natural goal post for a deal announcement, with both companies reporting their earnings on the same day. CBS will report its own third-quarter earnings after the bell on Thursday. A deal, though not expected on Thursday, could be reached by the end of the month.
Last week, the two companies reached a “working” agreement on the management structure. Joe Ianniello, who has served as acting CEO for CBS since Les Moonves’ ouster last September, would be offered an unspecified senior role overseeing brand assets, an individual familiar with the companies told TheWrap.
On its conference call with analysts, Viacom executives declined to talk about the impending merger.
11 Most Memorable 'Beverly Hills, 90210' Moments: From the Dress Incident to Donna and David's Wedding (Photos)
The meta-revival of "Beverly Hills, 90210" -- dubbed "BH90210" -- premieres Wednesday on Fox. The limited series will see original cast members Tori Spelling (Donna Martin), Brian Austin Green (David Silver), Shannen Doherty (Brenda Walsh), Jason Priestley (Brandon Walsh), Jennie Garth (Kelly Taylor), Ian Ziering (Steve Sanders) and Gabrielle Carteris (Andrea Zuckerman) all return to play fictionalized versions of themselves — “with a healthy dose of irreverence” — as they try to get a revival of their old show off the ground. And because "BH90210" is about bringing back "90210," TheWrap thought the best way to mark the occasion was to remind you of some of the most memorable moments from the original series, including those with the late Luke Perry (Dylan McKay). Click through our gallery to reminisce about the gang who used to hang at the Peach Pit.
When Brenda and Kelly wore the SAME dress to the spring formal. And we got this iconic line: "Brenda, how could you?"
Fox
When everyone makes sure Donna gets to graduate. The school board wasn't going to let her after she got drunk at prom, but the gang didn't stand for that.
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When Valerie replaced Brenda. The show said goodbye to Shannen Doherty and hello to Tiffani Thiessen, who immediately proved she was bad by smoking a joint in the Walshes house.
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David's weird condom jingle. Actually, maybe you don't remember this -- and that's a good thing.
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When Toni dies in the same episode that she marries Dylan. Might be one of the most heartbreaking moments of the entire series.
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David's heartbreaking speech about Scott. David has a break down after his childhood best friend Scott accidentally kills himself and the whole thing is broadcast over the school radio. David says he doesn't care, as he shames himself over the guilt he feels for abandoning his buddy for the cooler crowd.
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When Dylan didn't "do cameras." And made this very clear to David, who was trying to record him.
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When Kelly chooses herself over Dylan and Brandon. And literally says "I choose me," while reminding them she'll always love them both.
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Dylan's dad unexpectedly dies. In the episode titled "Dead End," Dylan's dad, Jack, dies in a car explosion, leading to blood-curdling scream session from a guy who is usually incapable of losing his cool.
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When David walks in on Kelly. A horrifyingly embarrassing moment between on-screen friends if ever there was one.
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Donna and David's wedding. The "90210" series finale gave us these long-awaited nuptials and reunited members of the original cast who came back to celebrate the end of the show -- or what they then thought was the end.
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“Brenda, how could you?!?”
The meta-revival of "Beverly Hills, 90210" -- dubbed "BH90210" -- premieres Wednesday on Fox. The limited series will see original cast members Tori Spelling (Donna Martin), Brian Austin Green (David Silver), Shannen Doherty (Brenda Walsh), Jason Priestley (Brandon Walsh), Jennie Garth (Kelly Taylor), Ian Ziering (Steve Sanders) and Gabrielle Carteris (Andrea Zuckerman) all return to play fictionalized versions of themselves — “with a healthy dose of irreverence” — as they try to get a revival of their old show off the ground. And because "BH90210" is about bringing back "90210," TheWrap thought the best way to mark the occasion was to remind you of some of the most memorable moments from the original series, including those with the late Luke Perry (Dylan McKay). Click through our gallery to reminisce about the gang who used to hang at the Peach Pit.