Viacom Inc. reported financial results for the quarter ended December 31, 2014, including higher revenues in its Media Networks and Filmed Entertainment segments and record adjusted diluted earnings per share.
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Quarterly revenues rose 5% to $3.34 billion, driven by increases across the business. Media Networks revenues increased 4% to $2.65 billion, due to higher affiliate fees and advertising revenues. Domestic affiliate revenues rose 8% and worldwide affiliate revenues grew 6%, primarily due to rate increases. Domestic advertising revenues declined 6%, reflecting lower ratings.
Worldwide advertising revenues rose 3%, reflecting a 60% increase in international advertising revenues driven by contributions from Channel 5, which was acquired in September 2014. The 4% increase in Media Networks revenues includes an unfavorable 1% impact of foreign exchange.
Filmed Entertainment revenues grew 6% to $720 million. Released theatrically in the fiscal fourth quarter of 2014, Teenage Mutant Ninja Turtles remained a strong performer in the current quarter, complementing the current quarter releases and helping to drive a 6% increase in theatrical revenues and a 16% gain in home entertainment revenues.
Home entertainment revenues reflect two film releases in the current quarter, compared with none in the same prior year period. License fees declined 9% resulting from the mix of available titles.
Quarterly adjusted operating income of $959 million was flat versus the prior year. Media Networks adjusted operating income declined 1% due to higher programming expenses partially offset by revenue gains.
Excluding the impact of foreign exchange, Media Networks adjusted operating income was flat for the quarter. Filmed Entertainment generated an adjusted operating loss of $60 million, an improvement of 19%, as higher revenues more than offset increases in film and distribution expenses.
Quarterly adjusted net earnings attributable to Viacom declined 2%, principally due to the 4% negative impact of foreign currency exchange rates, as well as higher interest costs.
Adjusted diluted earnings per share for the quarter increased 8% to $1.29, a record for the fiscal quarter ended December 31. Foreign exchange had an unfavorable $0.05 impact on adjusted diluted EPS. ■