Viacom Reports Fourth Quarter and Full-Year 2017 Growth as Strategic Plan Advances

by Stuart Winchester, Viacom

Riding broad ratings increases, significant improvement in domestic ad sales, and continued growth of its international business, Viacom reported fourth-quarter and full-year earnings this morning headlined by year-over-year gains in revenue and other key financial metrics.

The report serves as an affirmation that the strategy outlined by Viacom President and CEO Bob Bakish in his first earnings call in February is working to stabilize and revitalize the business, reversing previous declines in revenue, operating income and operating cash flow.

“In the fourth quarter and full year, we made strong progress against our plan to fundamentally stabilize and revitalize Viacom, with top line gains in both Media Networks and Filmed Entertainment segments driven by continued execution on our strategic priorities,” Bakish said. “We saw significant ratings increases across the portfolio, which drove sequential improvement in domestic advertising; our international business continues to expand, delivering double-digit revenue increases; and Paramount is demonstrating growth across multiple revenue streams as it rebuilds the theatrical slate and continues to grow its TV production business. Additionally, we have completed several multi-year renewals of major distribution contracts – including our recent agreement with Charter – which secure broad, long-term carriage of Viacom’s networks for subscribers and expand our relationships with distributors through new, forward-looking advanced advertising and content production partnerships. We realized these achievements and established a stable base while reducing debt, improving free cash flow and strengthening our balance sheet.

“Viacom is stronger and our momentum continues to build. To accelerate our transition to long-term, sustainable growth, we are ramping up the evolution of Viacom’s media business to better serve next generation platforms and solutions while continuing to diversify our business and strengthen our global portfolio of flagship brands. In the coming year, we will continue to focus on unleashing the full creativity and energy of Viacom to create greater value for our shareholders and audiences.”

Here’s a closer look at what Viacom achieved this quarter, and what lies ahead:

Improved financial performance

The company’s operational and organizational changes have begun yielding financial results. Viacom ended the quarter with increased revenue (+3%, $3.3 billion), adjusted operating income (+7%, $578 million), and adjusted earnings per share (+12%, $0.77). Revenue grew six percent for the full year, to $13.3 billion, while adjusted earnings per share grew two percent to $3.77.

As revenue increased, operating free cash flow also grew 26 percent, to $1.5 billion, while the company reduced gross debt by approximately $2 billion since February, a 15 percent reduction in the company’s debt load and an important step in retaining its investment-grade metrics. The company expects to further reduce its total debt load in 2018.

The most viewers in cable, and growing

Viacom continues its longstanding position as the most-watched cable family in the United States. Behind a varied collection of channels tucked alongside the flagship six of MTV, BET, Comedy Central, Nickelodeon, Nick Jr. and Spike (soon to be Paramount Network), the company has earned a larger share of several coveted audiences than any competitor, including Millennials, African-Americans, and key child and adult demographics:

This position is likely to strengthen, as strong programming helped drive quarterly ratings up three percent across the domestic portfolio and six percent across the flagship brands, with especially sharp rises at several networks:

Viacom International Media Networks’ ratings also grew four percent, riding the strength of Paramount Channel, Comedy Central, Nickelodeon, Telefe and Channel 5.

Strong partnerships lock in subscribers, stabilize ad sales

Viacom has put renewed focus on building stronger partnerships, with positive results in the distribution and ad sales worlds.

After signing an advanced advertising and content distribution agreement with Altice USA earlier this year, Viacom yesterday finalized a renewal of its deal with Charter Communications. Both of these deals transcend traditional carriage arrangements to include data, advertising and co-production components, underscoring Viacom’s focus on finding opportunity in a rapidly changing industry.

Viacom has now locked in agreements with nearly half its subscribers in the past year, with no major renewals looming until well into 2019.

Additionally, the company announced earlier this week that 11 of its networks would headline the new Philo streaming product, a low-cost entertainment package that will also include programming from A+E, AMC, Discovery and Scripps.

Strong partnerships – combined with the aforementioned ratings growth and industry-leading innovation – also helped stabilize ad sales after a decline in the same period last year. International ad revenues were especially strong, jumping 36 percent.

Top talent and intellectual property drives so much more ahead 

Viacom’s fiscal 2018 is already well underway, and the company’s reinvention continues to accelerate behind a portfolio of diverse and iconic brands. On the immediate horizon, Viacom looks forward to further growth into next generation platforms with the launch of Viacom Digital Studios behind former Awesomeness TV Chief Digital Officer Kelly Day, an increase in live events led by SpongeBob on Broadway, the launch of Paramount Network in January, the upcoming content partnership with Tyler Perry – who is already scripting a film for BET – and so much more.

To see what Viacom will debut in the months ahead, scroll through the timeline below, or click here to view the full-screen version.

To listen to the earnings call or read the press release or other materials, visit Viacom Investor Relations.

5 Questions With Viacom18’s Sudhanshu Vats

Viacom18 is the home of Viacom’s brands in India and is one of the country’s fastest-growing entertainment networks, reaching more than 600 million viewers in 80 countries across its channels.

Hear from Group CEO Sudhanshu Vats as he talks about the business, its programming and how they’re celebrating Viacom18’s 10th anniversary this month.

Video by Viacom Catalyst.

Viacom, Home to MTV, BET, and MBAs

An NYU graduate student gazed at the dazzling digital wallpaper in The White Box event space at Viacom’s Times Square Headquarters, sipping a mimosa and munching a croissant. Other students milled about, intrigued by animation-splashed LED panels splashed with famous Viacom characters, such as Broad City’s Abbi and Ilana.

Networking before the panel discussion. Photo by Essence Dashtaray.

Viacom’s MBA Media Trek invited 150 grad students from some of the most prestigious business schools in the U.S. – such as Columbia, NYU and Harvard – to sit in on a panel featuring company executives and mingle with them afterward.

Viacom was one of several stops for these students on their tour of media hubs. Our talent acquisition department organized the event, curating an accomplished panel of speakers that included MTV President Chris McCarthy, Viacom Vantage Senior Vice President Gabe Bevilacqua, Paramount Digital Content Senior Vice President Anu Bhatia, and Viacom International COO Jose Tolosa.

The goal: to define Viacom’s eclectic, innovative culture, so the students could understand the workings of a fast-paced modern media company and determine whether it was a potential match for their ambitions.

What is Viacom?

Daisy Auger-Dominguez welcomed MBA grads to Viacom Headquarters. Photo by Photo by Essence Dashtaray.

Daisy Auger-Dominguez, our senior vice president of talent acquisition, welcomed students by sharing what makes her most proud to work at this company: “Viacom creates entertainment that drives culture and conversation.” She emphasized the massive breadth of this entertainment, with 4 billion subscribers in more than 180 countries.

“We are truly a global company,” said Auger-Dominguez. “This work extends to all areas of our business – from content production to advertising, distribution to data strategy and beyond.”

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Viacom’s Girls Who Code Summer Immersion Program Grad Ceremony Inspires Teen Coders, Employees and Company Executives

Each year since 2015, Viacom Headquarters has opened its doors to a group of teenagers, letting them loose on the floors of our tech department and off-site broadcasting control rooms.

Sound hectic? Well, it’s part of Girls Who Code, a nationally-renowned nonprofit initiative which aims to increase the number of women in computer science. It teaches young girls computer programming skills, which they can use towards a future career in tech, or any number of jobs where this knowledge is essential.

Viacom’s Girls Who Code summer immersion program graduation ceremony at Viacom’s Times Square Headquarters inspired a new generation of teen techies.

Viacom provides expert mentors from various fields in the company to teach the girls what it takes to become a force in any industry they pursue. We host field trips to off-site locations such as The Daily Show production studio, where the teens can see how many ways tech can be applied in the media industry.

And yes, the result is a bustling summer of adventure and learning, with crowded elevators at company headquarters and wide-eyed teens gazing at the walls of our building as if it were a majestic castle. It’s also a valuable learning experience for current employees.

In many ways, our GWC program reminds me of how lucky I am to work at Viacom—a place where we’re encouraged to learn new skills, connect with colleagues in other departments, and walk through hallways covered with exquisite art.

At the end of August, the company held a graduation ceremony for these students at our Times Square Headquarters.

The 2017 graduating class of Viacom’s Girls Who Code summer immersion program.

Viacom President and CEO Bob Bakish spoke at the event, telling the audience how Viacom’s involvement with GWC personally resonated.

“Speaking as an engineering grad – but more importantly, as a dad of two teenage girls, it’s especially gratifying that Viacom is part of this incredibly important work to build a strong community of female leaders in computer science,” said Bakish.

“[Viacom] brands create great content that drives culture and conversation in more than 180 countries. Coding enables us to do what we do – from production to distribution, operations to advertising, broadcasting and beyond.

It is the glue that holds our digital infrastructure together…and it’s the foundation for the new and innovative experiences that allow our fans to connect even more closely with their favorite Viacom brands and content.”

Viacom President and CEO Bob Bakish speaks about the value of diversifying tech at Viacom’s Girls Who Code summer immersion program graduation ceremony at Viacom’s Times Square Headquarters.

Nickelodeon President Cyma Zarghami also spoke, telling the audience of graduates, employees and family members how crucial coding is for women. “There are so many places where females are underrepresented and its inspiring to know there are movements like Girls Who Code who are trying to change that,” said Zarghami.

The Nickelodeon executive followed up with an pertinent example of how the network broke gender tropes with an iconic 90s show, Clarissa Explains It All.

“It was an important show because it broke a lot of rules. We were told that boys wouldn’t watch shows about a girl. And that more girls would watch a show about a boy than about a girl,” said Zarghami. However, the show defied stereotypes: “It was a giant hit.”

There is so much more to be done, Zarghami stressed. “There aren’t enough women directors, or screenwriters, or producers. Or female leads in super-hero movies,” said Zarghami.

“But there is a movement now to change all of that, not just in TV and tech, but in every field. And you, and your generation, and organizations like Girls Who Code, are a big part of this change.”

Hear from the grads

“Thank you Viacom for this amazing opportunity and for helping to combat the stigma that girls can’t do math or STEM because WE CAN and WE WILL!” – Group Body Posi+-

“Viacom helped bring a real-life touch to coding.” – Charlotte, Girls Who Code 2017 Graduate

“It was so cool being here at Viacom. We went to see The Daily Show with Trevor Noah. We got to see the whole studio and all the people working to make the production come alive, which was cool especially since I’m interested in entertainment and the more creative aspect of production. It was interesting to hear from the staff the paths they took to get to their career, which weren’t necessarily conventional [production-oriented] paths. I grew up watching Nickelodeon. We got to see where the magic happens and how [shows] are made. It was great to see how we can take what we learned in seven weeks and use that to actually help people and create things on your own in the future.” I’ve never coded before, so I was a little nervous about that. However, the other students in the program were supportive, amazing and just so friendly, and it was amazing being with such a diverse group of girls. Everyone was different, they had different ideas, came from different backgrounds…it was just so cool. I definitely made some great friends here.” – Alaire, Girls Who Code 2017 Graduate

“We really enjoyed our guest speakers. One of the speakers gave us really good insight about being a woman in tech, life in general and how to maintain a balance between work and play.” – Maitri, Girls Who Code 2017 Graduate

“Going on what Maitri said, this speaker told us that you don’t always have to stick to one thing, you can always go around and you find different things and eventually you will find something that you are the perfect fit for.” – Brianna, Girls Who Code 2017 Graduate

 

Photos by Amy Pinard Photography 

Viacom’s Third Annual Girls Who Code Summer Immersion Program Opens Doors and Unlocks Keys to Diversity

Since 2015, Viacom has welcomed 60 high school girls to its Times Square Headquarters as part of the nationally-renowned Girls Who Code summer immersion program. Girls Who Code is a nonprofit organization driven to close the gender gap in tech by giving young girls a foundation in coding.

“Coding is a skill that can open up many doors for someone,” said Viacom Senior Director of Technology, Aurelie Gaudry. “Viacom is the perfect partner for a Girls Who Code Summer Immersion Program because it introduces young women to beginner computer science concepts while also allowing them to see many different paths coding can lead you down.”

💙💕💛💕💙 #Viacom #NYC #gwcviacom

A post shared by Girls Who Code NYC (@girlswhocodenyc) on

At Viacom, these paths include careers in TV production, or creating apps for Nickelodeon and BET. It could be a managerial role, directing a team of engineers to develop new online games, or even one in communications, acting as a liaison between coders and brand representatives.

“One of the wonderful benefits of hosting the GWC program is watching our technology team find inspiration from the passion and caliber of the young women involved,” said Viacom Chief Technology Officer Dave Kline.

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Kid Power, Staying Grounded, India’s Pragmatic Youth: Viacom Global Insights Digest, November Edition

by Christian Kurz, Global Consumer Insights, Viacom

Viacom’s latest consumer insights from around the world include global kids’ influence on household decisions, how people remain grounded in stressful times, and the pragmatism of Indian youth.  As always, you can read these and all our stories in English, Latin American Spanish and Brazilian Portuguese.

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BET’s The Mane Event Really Was the Main Event, Breaking Ratings and Social Media Records For the Year

After seven years, trap royalty finally tied the knot.

Gucci Mane and Keyshia Ka’oir are many things: makeup moguls, Instagram influencers, investors, TV personalities, hip-hop royalty and stars of BET’s latest reality show, Gucci Mane and Keyshia Ka’oir: The Mane Event.

Now, they’re a married couple. The Mane Event kicked off with the live, televised wedding on Oct. 17, so fans could bear witness their extravagant ceremony through BET’s special. And 1.6 million viewers RSVP’d, making the premiere the no. 1 cable series premiere of the 2017-2018 season as of October, according to a press release. It also dominated social media, with 1.2 million social interactions across Twitter and Facebook for that night, with BET’s hashtag #TheWopsters trended at no. 1 worldwide on Twitter during the premiere.

Now that The Wopsters have said “I do,” BET’s 10-part docu-series will backtrack, detailing the extensive prep-work leading up to the power couple’s lavish labor of love, which The Huffington Post deemed “wedding of the year.”

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RuPaul, Daily Show Bring Combined Four Creative Arts Emmys to Viacom

by Stuart Winchester, Viacom

Behind the dual cultural touchstones of VH1’s RuPaul’s Drag Race and Comedy Central’s The Daily Show with Trevor Noah, Viacom tallied four wins at the Creative Arts Emmys earlier this week. Here’s a video round-up of the victors:

Viacom 2017 Creative Arts Emmy Wins from Viacom on Vimeo.

This is RuPaul’s second consecutive year taking the Outstanding Host of a Variety, Nonfiction or Reality Program honor – an outcome that was widely predicted after the show’s move from Viacom’s Logo to VH1 earlier this year.

Drag Race was already the best reality show on TV, and you’d have been hard-pressed to tell anyone within its community of loyal fans that its reach was niche, but the show’s move from the Logo network to Viacom neighbor VH1 proved that the ceiling on television’s premiere drag competition was even higher,” wrote Decider’s Joe Reid in July. “The show scored record ratings and was a massive hit on social media.”

Take one look at the host commanding the stage, and it’s clear why RuPaul repeated this top honor:

With the added exposure, the program racked up seven Emmy nominations this season, and one category remains undecided: RuPaul’s Drag Race is also nominated in the Best Reality Competition Series category, the winner of which will be announced at the primetime Emmys ceremony this Sunday, Sept. 17.

The Daily Show’s Emmy, for Outstanding Short Form Variety Series, celebrates Noah’s “Between the Scenes” takes, in which he riffs on prominent news stories. Here, the host breaks down the U.S. government’s bizarre tradition of perpetually threatening shutdowns over its own failure to raise the debt ceiling:

The Emmy win came on the same week that Comedy Central extended Noah’s contract through 2022. The move acknowledged the show’s incredible and consistent ratings and social engagement growth as the host nears his two-year anniversary at the helm. Vitally, The Daily Show is positioned to wrap this quarter as the most-watched daily, late-night show among millennials.

This is not Noah’s first trip to an awards podium – this past spring, he took Best Host at MTV’s reconfigured Movie and TV Awards.

Viacom Again Lands on Indeed.com’s List of Best Fortune 500 Companies to Work for

by Stuart Winchester, Viacom

Over the past several years, Viacom’s towering Times Square headquarters has undergone a series of significant renovations. In the lobby, enormous screens now hang alongside the elevator banks, a cavernous event space and a new cafe host an endless procession of parties and meetings, and a sequence of bold installations has invigorated the entrance areas with the energy of a high-end art gallery. Up on the seventh floor, the Wellness Studio offers heavily discounted memberships on a regimen of fitness classes, while employees can get their pictures album-ready for free at a printing studio. The 31st floor has been transformed into a massive convention center, while several other floors have been renovated in a style that elegantly meshes function and design.

As the company headquarters slowly sheds its old skin for the wide-open interiors of the 21st century media workplace, Viacom has been investing furiously in new, renovated and expanded buildings all over its footprint: earlier this year, the company united eight of its brands in a soaring space in the heart of Hollywood and vastly expanded its Burbank studio.

This invigorating workspace overhaul is just one of many perks to having a job at Viacom, and it likely contributes to the company landing on the upper half of Indeed.com’s list of  Best Fortune 500 Companies to work for for the second consecutive year.

What makes Indeed’s list unique is that their rankings are based entirely on data extracted from employee-submitted reviews. And the reviews are strong.

“I have worked at Viacom in Hollywood for over a year and love it,” went one typical comment. “Super fun and collaborative culture, cool brands and a nice work/life balance.”

Commenters praised the company’s perks (like free soda and coffee machines in many locations), employee events (like a conversation with LL Cool J), paid time off, benefits, and career development and advancement opportunities.

“Smart companies know that if they make their workers feel comfortable and happy, they will work harder and longer,” another commenter wrote. “Happiness pays for itself with higher productivity.”

The company has spent decades building a deep talent pool – signed plaques commemorating 10-or-more-year anniversaries are ubiquitous on desks around the office – and this shows in the deep respect that many commenters had for their peers. “My co-workers were some of the smartest professionals I’ve ever worked with,” wrote one person, who identified themselves as a former vice president in Ad Sales. Another expressed a similar sentiment: “At Viacom I learned how to be a better engineer, you are around GREAT and strong engineers and as our lead architect would say, ‘Stay with us, we will make you better.’”

And while all of these things are, in my experience, true, and having cool workspaces infuses day-to-day tasks with a certain energy, there is something far more important that Indeed identified as a common thread running through all of the top 50 companies. “A recurring theme across the employee reviews for these firms is the importance of a strong company culture and clear values,” a post on the site announcing the list explained.

Indeed, a strong community conscience has always been vital to Viacom’s self-image, and many employees praised  the many volunteer opportunities, an inclusive culture that values diversity, and the unexpected benefits that transcend the typical menu of health insurance policies, such as adoption assistance.

Viacom employees help clean up Central Park at Viacommunity Day 2017, the company’s annual day of community service.

While a constellation of factors influence how people feel about their jobs every day, there is a pervasive pride, throughout the comments on Indeed, of working for a company that is so vital to the modern media and entertainment landscape, and one that is adapting so well to it, with advanced data capabilities and audience measurement tools. As one commenter wrote, “The industry is going through a major restructure and this company is ahead.”

This recognition from Indeed is the latest in a long line of acknowledgements that the company has received for creating a supportive and attractive work environment. Last year, Fast Company named Viacom a top destination for work-life balance, Fatherly named us to its Great Workplaces for New Dads list, and Working Mother put the company on its 100 Best Companies list for the sixth consecutive year.