Viacom Misses Revenue Targets

The report adds: “Viacom’s movie slate for the fourth quarter includes “Terminator: “Genisys” and ‘Mission: “Impossible – Rogue Nation“, which are expected to drive revenue”. Analysts’ estimates typically exclude special items. Our Media Networks are quickly bringing innovative data-based advertising products to market, broadening our sales capabilities and developing new solutions for marketing partners that capture the full scope and depth of our powerful multiplatform brands.

At this segment, quarterly revenues fell a considerable 44% year over year to $479 million, mainly on account of a 92% drop in Global Theatrical revenues and 30% fall in home entertainment business revenues.

Viacom’s tv networks hit a tough patch, too. Analysts had projected $1.47 a share in profit on $3.2 billion in revenue, according to FactSet.

Viacom has staked future growth on worldwide expansion.

Viacom delivered quarterly earnings that matched analysts’ expectations on Thursday, but revenue was light, hurt by lower revenue from the company’s films business as there were no major movie releases in the quarter. Revenue declined 11% to 3.06 billion.

Now what: Viacom’s filmed entertainment division, comprising studios such as Paramount Pictures, Nickelodeon Moves, and MTV Films, faced a hard year-over-year comparison in the third quarter.

Filmed entertainment unit adjusted operating income fell 13 percent, or $7 million, to $48 million.

What: Shares of Viacom (NASDAQ:VIA) (NASDAQ:VIAB) plunged as much as 22% in Thursday’s trading, following the release of disappointing third-quarter results. Viacom has a 52 week low of $40.25 and a 52 week high of $82.36.

On the call, Mr. Dauman said that 70% to 80% of U.S. subscribers will be covered by deals through 2018 “once we get through this round of deals”.

Adjusted net earnings attributable to Viacom for the quarter were $591 million or $1.47 per share, compared to $618 million or $1.42 per share a year ago.

For the quarter, Viacom’s cable channels generated $2.6 billion in revenue, the same amount as the year-earlier period. Worldwide advertising revenues decreased 2 percent, despite a 58 percent surge in global advertising revenues driven by Channel 5, which was acquired in September 2014.

He also noted that Nickelodeon’s “Kids Choice Sports” has become popular with advertisers and said he believes Trevor Noah taking over for Jon Stewart on Comedy Central’s “The Daily Show”, will allow it to attract a younger average audience. Mr. Dauman billed his replacement, Trevor Noah, as “late night’s first millennial host”.