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.

Check It Out: An Interactive Calendar of Viacom’s Q3 2017 Premieres

by Stuart Winchester, Viacom

Viacom’s brands continue to deliver incredible programming. As we look back and report Q2 2017 earnings today, you can click along the timeline below for previews of the rich future awaiting our fans. Click over to Viacom Investor Relations for more details about this quarter’s earnings.

See What Drove Viacom’s Q2 2017 Business Results – and What’s Coming Next

by Stuart Winchester, Viacom

Viacom reported its Q2 2017 earnings this morning behind strong performances across our portfolio. Click through the slideshow below to see what drove our business this quarter, and to get a preview of what we’re excited about coming up. Click over to Viacom Investor Relations for more details about this quarter’s earnings.

Viacom CEO Bakish Outlines Long-Term Growth Strategy on CNBC

by Stuart Winchester, Viacom

Footage courtesy of CNBC.

Viacom will marshal its resources around six flagship networks: MTV, BET, Nickelodeon, Nick Jr., Comedy Central, and Spike, which will be rebranded next year as a premium Paramount channel. Paramount Pictures will not be going anywhere; in fact, the flagship networks will join forces with the iconic studio to produce one or two co-branded films every single year. The company still claims the highest viewership of any cable family in the United States.

These were among the core messages that our CEO, Bob Bakish, delivered to David Farber on CNBC’s Squawk on the Street following release of the company’s first quarter 2017 earnings yesterday. Watch the full conversation above, and click over to Viacom Investor Relations to read the press release or listen to the earnings call.

These Charts Show Viacom Leading All Cable Families and Two Key Ratings Demos

by Stuart Winchester, Viacom

Once again, Viacom leads all cable families in total viewership, a full percentage point ahead of its nearest competitor. There’s a lot driving this continued strength, including Nick’s status as the king of kids’ programming, with 12 of the top 20 rated cable TV shows for kids between 2 and 11 airing on one of its networks. Viacom does well in all demos, though – several of our networks combine to make up fully half of the top 20 cable series for viewers 12 to 34.

The charts below spell out these viewership and ratings successes in more detail, but they show the company’s strong position as we report our Q1 2017 earnings today. For more business numbers, check out our Investor Relations page on viacom.com.

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Flip Through This Interactive Deck to See How Each Viacom Brand Killed It in Q1 2017

by Stuart Winchester, Viacom

As we report our Q1 2017 earnings today, it’s fair to say that Viacom brands are killing it.

Behind smash hits such as Henry Danger, the Thundermans and The Loud House, Nickelodeon has spent 79 consecutive weeks at the top spot in its core demo.

South Parksharp and loud as ever in its 20th season, led all of TV in its time slot among male viewers, while Trevor Noah racked up his most-watched quarter since he joined The Daily Show behind his biting coverage of the presidential election and beyond.

BET’s Hip Hop Awards and Soul Train Awards were the top two cable award shows for the quarter.

We could go on, but it’s probably more fun for you to flip through the deck below to see what’s happening with all of our brands, from newly acquired Argentinian giant Telefe to Paramount Pictures to a surging MTV. We’ve also included clips from some of the upcoming projects we’re most excited about. For more business results, visit our Investor Relations page on viacom.com.

Viacom Remains the Top Cable Family, Digital Traffic Surges & More Q4 Highlights

by Stuart Winchester, Viacom

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As Viacom reports fourth quarter and full-year earnings, there is great momentum driving many of our brands: The top reality show on cable, an enormous surge in VMA streams, the 20th anniversary of South Park, the continued surge in ratings at TV Land and VH1. Check out the details in the slides above.

Behind this strong programming, Viacom continues its long run as the most-viewed family of cable networks, with the most non-sports shows in the top 20 and more than half of the top children’s programs. We’ve also seen a surge in digital, mobile and social consumption:

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Check Out This Video Calendar of Viacom’s Upcoming Premieres

by Stuart Winchester, Viacom

There’s a whole lot coming up at Viacom over the next few months.

Paramount sends aliens hurtling from the cosmos and Brad Pitt and Marion Cotillard back to World War II. Denzel Washington and Viola Davis dazzle in Fences while Jennifer Aniston and Jason Bateman burn down the city in Office Christmas Party.

Martha Stewart and Snoop Dogg team up on VH1really – for what is likely to be the dopest cooking show around. America’s Next Top Model returns to the same net. We wave goodbye to MTV’s Teen Wolf, but meet a pair of bad-ass campus vigilantes on Sweet/Vicious.

Original content continues to rule across our networks, from TV Land’s smash hit Younger to CMT’s January debut of Nashville to BET’s Being Mary Jane and New Edition biopic. Spike delivers some hard truth with a documentary on the tragic story of Kalief Browder.

And more favorites keep pouring back in: RuPaul returns with season six of RuVealed on Logo while The Daily Show With Trevor Noah and @Midnight continue their runs on Comedy Central.

And for the kiddos, Nick keeps the incredible stuff coming with Albert and Rusty Rivetsalong with a nostalgic run back to the 90s with a Legends of the Hidden Temple movie.

Watch previews of all of this and much more below: