Viacom reported financial results for the quarter ended June 30, 2015, including a 4% increase in adjusted diluted earnings per share to $1.47, a record high for the June quarter.
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Quarterly revenues declined 11% to $3.06 billion due to lower theatrical revenues in Filmed Entertainment, which scheduled no wide theatrical releases in the quarter.
Media Networks revenues increased $6 million to $2.60 billion, primarily due to higher affiliate fees.
Absent an unfavorable 2% impact of foreign exchange, Media Networks revenues increased 2%.
Worldwide and domestic affiliate revenues rose 2%, driven by rate increases. Excluding the impact from the timing of product available under certain distribution agreements, domestic affiliate revenues grew in the mid-single digits.
Domestic advertising revenues decreased 9%, due to a decline in traditional ratings. Worldwide advertising revenues decreased 2%, which reflects a 58% gain in international advertising revenues driven principally by Channel 5.
Filmed Entertainment revenues decreased by 44% to $479 million, largely due to a decline in theatrical revenues of 92% related to the timing of the summer season theatrical slate.
In the prior year, Transformers: Age of Extinction was released in the third quarter, while this year's summer tentpoles, Terminator: Genisys and Mission: Impossible - Rogue Nation, were widely released in the fourth quarter.
Worldwide home entertainment revenues decreased 30%, to $199 million in the quarter, and ancillary revenues declined 43%, primarily driven by the benefit in the prior year of the sale of certain distribution rights.
Quarterly adjusted operating income was steady at $1.08 billion. Media Networks adjusted operating income declined 1% to $1.11 billion.
Absent a 1% adverse impact of foreign exchange, Media Networks adjusted operating income was flat. Filmed Entertainment adjusted operating income declined $7 million to $48 million.
Quarterly adjusted net earnings attributable to Viacom declined 4% to $591 million. Adjusted diluted earnings per share for the quarter increased 4% to $1.47. ■