Viacom Tops Estimates in Last Quarter as Stand-Alone Company

(Bloomberg) -- Viacom Inc. posted earnings that exceeded analysts’ estimates in what is expected to be its final full quarter as a stand-alone company, delivering on management’s promises to restore growth to its U.S. TV business and the Paramount Pictures studio.

• The company, which plans to merge with CBS Corp. before the end of the year, reported earnings of 79 cents a share excluding certain items, a decline from a year ago but topping analysts’ forecasts. Sales of $3.43 billion also declined from a year ago but matched expectations.
• See more details.

Key Insights

• Domestic advertising sales and affiliate sales rose in the quarter, and for the year, a sign of health at its stable of domestic cable networks, which includes MTV and Nickelodeon.
• Paramount Pictures posted a profit in the quarter, thanks to “Crawl” and “Dora and the Lost City of Gold.” The studio that made “The Godfather” also reported its first annual profit since 2015.
• Rather than create its own paid streaming service, Viacom has opted to sell its best shows and movies to existing providers. In this quarter, it has licensed “South Park” to HBO Max and struck a deal for Nickelodeon to make TV shows and movies for Netflix.
• Pluto TV, an advertising-supported online video service, grew to 20 million monthly users.

Market Reaction

• The shares rose as much as 3.6% in New York trading. The stock was down 14% this year through Wednesday’s close.

Get More

• Read the release.
• Read more coverage of Viacom’s merger plans.

To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III

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