Viacom Posts Strong Second Quarter 2018 Earnings, Revitalization Accelerates

by Stuart Winchester, Viacom

Viacom posted strong second quarter 2018 earnings this morning, outperforming projections with significant gains in both adjusted operating income and adjusted earnings per share as the company accelerates its pivot from stabilization and revitalization to growth.

Double-digit gains across all international Media Networks revenue streams, Paramount Pictures’ return to profitability, ratings increases at key flagship networks, significant benefits from cost savings, further diversification into live events and other adjacent businesses, and an increased focus on next-generation platforms and solutions all set Viacom on a trajectory toward a full fiscal year of growth.

“Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter,” said Viacom President and CEO Bob Bakish. “Our flagship brands increased audience share among important demos for the fourth consecutive quarter, and we saw sequential improvements in domestic advertising and affiliate revenue performance. Internationally, Viacom continued its winning streak, achieving double-digit revenue and profit gains in the quarter while expanding its global footprint through new channel launches and innovative mobile distribution deals across Europe and Asia. Our cost transformation initiatives are well under way; we anticipate more than $100 million in cost savings in fiscal 2018, and now expect over $300 million in run-rate savings in fiscal 2019 and beyond.

“At Paramount Pictures, turnaround efforts have firmly taken hold as the studio improved margins and returned to profitability. This month’s outstanding box-office performance of A Quiet Place, the first film produced and released under the new team at Paramount, is a clear sign of our progress.

“Viacom also took strides to advance its participation into next generation platforms and solutions. We continued to benefit from growth in the vMVPD space, delivered revenue gains in Advanced Marketing Solutions, and significantly increased original content production through Viacom Digital Studios to drive off-linear consumption. Additionally, we continue to diversify into adjacent businesses by building on our live events strategy with upcoming tentpoles including Comedy Central’s Clusterfest, the BET Experience, Nickelodeon’s U.S. debut of SlimeFest and our first-ever VidCon.”

Viacom’s core business continues to strengthen

Improved performance throughout Viacom’s core business – domestic and international Media Networks and Paramount Pictures – allowed the company to meet or beat guidance on key metrics year-over-year for the quarter, producing five percent adjusted operating income growth and a 16 percent jump in adjusted earnings per share.

Domestically, both advertising and affiliate revenues increased. Viacom’s flagship brands (NickelodeonNick Jr.MTVBETComedy CentralParamount Network), grew audience share year-over-year for the fourth consecutive quarter, while the company continued to hold the top share of basic cable viewing in key demos, including adults 18-34, African-Americans, and kids 2-11. BET grew year-over-year ratings and share by double digits for the third consecutive quarter, while VH1, CMT and TV Land notched year-over-year growth in audience share and ratings. MTV’s programming resurgence continued, with a third straight quarter of year-over-year primetime ratings growth led by Jersey Shore: Family Vacation, which, with 10 million viewers on its opening weekend, was the biggest unscripted cable premiere since 2012.

Viacom International Media Networks is on pace for another record year after posting double-digit increases in profitability, as well as across all revenue streams.

Paramount Pictures returns to profitability

After notching a $75 million year-over-year improvement in adjusted operating income under its new management team, Paramount Pictures raised the curtain on the third quarter with the release of smash hit A Quiet Place. The film rode overwhelmingly positive critical response and deft marketing to the studio’s best opening since 2016 and the second biggest domestic opening so far this year, earning more than $200 million in its first three weeks alone on just a $20 million production budget. Additionally, the studio’s Paramount Television production business anticipates $400 million in revenues this year. Behind these and other catalysts, Paramount expects meaningful improvement to its full-year adjusted operating income for the full fiscal 2018.

Viacom is aggressively increasing its digital output on next-generation platforms

Anchored by 850 million social media followers, the newly formed Viacom Digital Studios is poised to create more than 600 hours of short-form original content this year. This quarter alone, social video views shot up 70 percent (to 4.3 billion), and domestic minutes viewed increased by 78 percent (to 4.7 billion minutes) year-over-year.

The addition of Nickelodeon’s Noggin app to Amazon and a renewed agreement that adds more Viacom content to Snap’s programming slate, in addition to recent and forthcoming mobile deals, will continue to expand the reach of Viacom’s increasing volume of on-the-go-content.

Growing ad revenue through Advanced Marketing Solutions

Viacom today detailed how its Advanced Marketing Solutions (AMS) portfolio would provide even greater opportunity to take advantage of new advertising platforms. The company also broke AMS – which increased its revenue 29 percent in the quarter – into two basic categories:

  1. Advanced addressable video inventory contains advertising units that Viacom can target to consumers, either through its brands’ apps, or by using set-top-box data from its advanced advertising partners, including Comcast, Charter and Altice USA.
  2. Brand solutions is a bundle of consulting, creative services and associated activations that includes social campaigns led by influence marketers WHOSAY, creative integrations with in-house integrated marketing and creative solutions team Viacom Velocity, and experiences at retail stores or Viacom’s growing portfolio of live events.

Viacom live events and consumer products lines continue to grow

Viacom continues to reinforce its brands and drive revenue through live events, recreation, consumer products and other business lines. This quarter marked a nearly 100 percent increase in live-event attendance over 2017, and there are plenty more events in the pipeline, including Comedy Central’s Clusterfest, the BET Experience, Nickelodeon SlimeFest, and the first VidCon since the online video conference joined Viacom – all of which should serve to double live-event and recreation revenue this year.

Viacom’s future looks strong

“Looking forward, we see continued momentum as we pivot from stabilization and revitalization of our business to a new phase of growth,” Bakish said.

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

MTV Rides Longest Ratings Growth Streak in 18 Years as Fans Await Even More “Shore”

by Stuart Winchester, Viacom

MTV’s ratings continue to grow at a torrid pace behind a programming resurgence that has revived beloved franchises and ignited new ones. As the net celebrates nine consecutive months of year-over-year primetime ratings growth – its longest streak in 18 years – MTV is keeping the programming fires stoked by announcing that the forthcoming Jersey Shore Family Vacation will reunite the original crew for not just a single season, but a second one as well.

The show’s April 5 debut follows a domestic reintroduction to the enormously popular Shore franchise in the form of hit Floribama Shore, which landed as MTV’s highest-rated series premiere in more than three years. Last night, the net also debuted a spin-off of sorts, Winter Break: Hunter Mountain, a mountain- and snow-bound reskin of the beachside Jersey barhoppers executive produced by Shore developer SallyAnn Salsano.

The pivot to unscripted programming behind MTV President Chris McCarthy has driven ratings up 20 percent year-over-year among adults 18-49, making MTV the fastest-growing channel among the top 40 cable networks.

Building upon the significant Shore archive, MTV will broadcast four Road to Vacation specials that cut the most unforgettable Jersey Shore footage with new cast interviews. The first throwback will debut March 15, with a new edition airing every Thursday leading up to the show’s premiere.

MTV Keeps the Party Going from Shore to Shining F***ing Shore

When Floribama Shore came whirling out of MTV in November as a barrage of binge drinking, bar brawls and bedwetting, it included a surprise announcement: the cast of the original Jersey Shore, which launched a global franchise and transformed “GTL” into widely understood shorthand, was reassembling for a new series: Jersey Shore Family Vacation.

Fans’ appetite for more Shore seemed to match the network’s enthusiasm – that first episode of Floribama Shore was MTV’s highest-rated premiere in more than three years.

There’s plenty more to come. After a raucous season that embedded itself deeply enough into the national conversation to earn the honor of a hilarious Saturday Night Live skit, MTV announced that Floribama Shore would return for 20 episodes starting this summer. The net also dropped another Family Vacation promo, this time asking viewers to help decide where the f*&% the OG cast will go by using the hashtag #JSFamilyVacation.

To understand the show’s popularity, it helps to examine its layers.

Watching an episode of Floribama Shore is akin to hopping into a time portal, transporting you to a bygone era of hot pin Polo T-shirts with the collar popped and “going-out tops” (aka the early aughts) that is somehow fused with 1950s sensibility.

It’s a world where a 23-year-old divorcée is fraught with anxiety over potential spinsterhood, and a gorgeous 24-year-old woman frets over aging. The male contestants at once act hyper-macho and are quintessential Southern gentleman. Imagine living life on the set of A Streetcar Named Desire, surrounded by the scent of Hollister cologne.

Of course, this group of twentysomethings partied as hard as their predecessors, but they also prayed before dinner and had thoughtful, seemingly unscripted conversations about their lives—one cast member had been homeless before the show, and another was reeling from the end of a 10-year relationship after her boyfriend cheated on her with her cousin. (This was, according to her, an “Alabama thing.”)

These deep conversations about real-life issues are perhaps what won over fans and critics, enough to earn the show a second season. In a Rolling Stone review, writer Kory Grow said Floribama Shore revealed “soul” and lauded MTV for showing “a group of eight red-state denizens, who, despite their personal flaws, did not espouse any outward Trumpism (or for that matter, Hillary hating). They all found common ground with each other easily – praying, discussing their Christianity and talking about their families.”

While you’re waiting for season two of Floribama Shore, watch season one on MTV, or cast your vote for the crew’s destination on Twitter, because the party hasn’t stopped.

Check out these tweets from our fans:

Legends Return and Stars Unite as Viacom Nets Stuff the Content Pipeline

by Stuart Winchester, Viacom

It’s a time of great energy and invention at Viacom, with our networks announcing new shows, series extensions, and reboots weekly.

“Content is what Viacom is,” Viacom CEO Bob Bakish told CNBC’s Julia Boorstin last week. And this robust content pipeline underscores that point as ratings continue to creep up at core channels and fourth-quarter and full-year earnings map upticks in revenue and other key financial metrics.

The return of those crazy kids of Jersey legend, a beloved host helms an all-new concept, a fan-favorite franchise expands south, an unlikely onstage pairing produces a dazzling country-pop concert, a pair of season renewals drop, and a comedy legend is honored – here’s a look at previews for some our most anticipated programming, all of which MTV, VH1, CMT and Spike have released in just the past week:

MTV:

When Floribama Shore hit with the highest ratings of any network premiere in three years, it underscored fans’ hunger for the return of the Shore franchise. Perhaps foreseeing this enthusiasm, MTV queued up the return of the original series cast with a spot announcing Jersey Shore: Family Vacation during Floribama’s debut.

We don’t have many details or even a premiere date yet, but we know the important stuff: Deena, Pauly D, JWOWW, Vinny, Ronnie, Snooki and The Situation will all be back on our screens, together:

After headlining a pair of MTV classics in Rob & Big and Rob Dyrdek’s Fantasy Factory,  skateboarder and reality star Rob Dyrdek returns to the network headlining Amazingness. Human towers, a hands-free archer, stepladders balanced on teeth – check out what will be – in Dyrdek’s words – “the talent show like no other talent show in the world” beginning this Friday, Dec. 8.

VH1:

VH1 has a New Year’s present for its rabid base of Love & Hip Hop fans – the premiere of the latest complement to the hit shows set in New York, Atlanta and Hollywood: Love & Hip Hop: Miami. Here’s a first look at the series and its ensemble cast, featuring Trick Daddy, Trina, Gunplay and Amara La Negra, among others:

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