[opendtv] Affiliate Fees Drive Viacom Q4 | Multichannel

From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
Date: Sat, 15 Nov 2014 09:26:12 -0500
http://www.multichannel.com/news/content/affiliate-fees-drive-viacom-q4/385512

Affiliate Fees Drive Viacom Q4

Viacom reported a 9% rise in fiscal Q4 revenue, driven mainly by a big boost in 
affiliate fees as domestic ad sales fell 5% in the period.

Revenue for the media giant came in at $3.99 billion, and adjusted net earnings 
from continuing operations attributable were $729 million ($1.71 per share), an 
increase of 10%.

Revenues for the full fiscal year were $13.78 billion, substantially unchanged 
from the previous year, as higher Media Networks revenues were offset by lower 
Filmed Entertainment revenues. Full-year adjusted operating income grew 5% to a 
record $4.13 billion and adjusted net earnings from continuing operations 
attributable to Viacom rose 3% to $2.38 billion. Full-year adjusted diluted 
earnings per share from continuing operations increased 15% to an all-time high 
of $5.40.

“Viacom's record financial results in 2014 demonstrate the strength of our 
brands and continuing momentum for our strategy of investing in creativity, 
with a relentless focus on growing demographic and geographic markets and 
embracing new distribution platforms,” CEO Philippe Dauman said in a statement. 
“Our Media Networks achieved continued growth in the fourth quarter and the 
fiscal year. Viacom's affiliate distribution business remains a reliable engine 
for high-margin revenue expansion and provides significant opportunities to 
build new consumer experiences with long term distributors and emerging 
technology partners alike. Despite ratings challenges and uncertainty in the 
scatter advertising market at the close of the year, Viacom's advertising 
revenues grew in fiscal 2014, as our creative and marketing teams rolled out 
innovative new offerings. We also continue to take the lead in defining the 
next generation of measurement tools that will more fully capture the growing 
multiplatform engagement of our audiences. Our September acquisition of Channel 
5 has already made a positive impact on our business, and points the way to 
further significant long-term growth of our international business. Paramount 
delivered the top movie of 2014 and the largest-ever theatrical release in 
China - Transformers: Age of Extinction - and the studio successfully launched 
another long-term franchise with the Teenage Mutant Ninja Turtles."

Media Networks revenues grew 8% to $2.66 billion, principally due to growth in 
affiliate fees. Domestic and worldwide affiliate revenues increased 21% and 
22%, respectively, primarily due to rate increases and higher revenues related 
to the timing of available programming from certain distribution agreements. 
Excluding the impact of these arrangements, the domestic affiliate revenue 
growth rate was in the high single digits. Domestic advertising revenues 
declined 5%, reflecting ratings challenges. Worldwide advertising revenues 
decreased 2%, reflecting the domestic decline partially offset by a 33% 
increase in international advertising revenues. International advertising 
revenues benefited from the acquisition of Channel 5 on Sept. 10.

Filmed Entertainment revenues grew 12% to $1.36 billion, due to growth in 
theatrical revenues. Strong results from current quarter releases and the 
carryover performance of Transformers: Age of Extinction drove Theatrical 
revenues up 226% to $557 million. Home entertainment revenues declined 38%, 
reflecting two fewer releases in the current quarter.

Full-year revenues were $13.78 billion, substantially flat compared to the 
prior fiscal year. Media Networks revenues rose 5% to $10.17 billion, 
reflecting a 10% increase in affiliate fees and a 2% gain in advertising 
revenues driven by higher international advertising revenues. Filmed 
Entertainment revenues decreased 13%, principally due to lower revenues across 
the distribution windows reflecting the number and mix of films.
[opendtv] Affiliate Fees Drive Viacom Q4 | Multichannel

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