Viacom Inc. full year operating income up by $117 million YOY
Paramount has achieved full year profitability for first time in four years
Viacom Inc. has released its financial results for the quarter and full year ended September 30, 2019.
The full year adjusted operating income has grown by $117 million year-on-year and for the quarter, adjusted OI has increased 42% to $54 million.
The full year revenue growth of 1% was principally driven by licensing and ancillary revenues, which were partially offset by lower theatrical revenue, the company has said.
In a company statement, Bob Bakish, President & CEO, has said: “Our strong performance in the fourth quarter capped off a pivotal year for Viacom and reflects the successful execution of our strategic priorities to evolve the company for the future. We achieved several important milestones. First, we grew domestic ad sales for the full year, driven by the continued acceleration of Advanced Marketing Solutions. We also grew full year domestic affiliate revenue, driven by the extended reach of Viacom's distribution across more viewing platforms. And, for the first time in four years, we returned Paramount to full year profitability – a testament to the strength of our strategy and content slate. As we look to the future of a combined ViacomCBS, we’re thrilled with the momentum we have to create one of the world’s preeminent content companies.”
As part of the filmed entertainment section, Paramount has delivered three straight years of year-over-year adjusted operating income improvement and achieved full year profitability for the first time in four years.
The licensing revenue has increased by 5% for the full year and 26% for the quarter, driven by growth in TV production.
Ancillary revenue has gone up 33% for the full year, driven by higher licensing fees from international theme parks and a new music rights agreement.
Viacom Media Networks has achieved a full year growth in advertising in the US and affiliate revenue, driven by continued acceleration in Advanced Marketing Solutions and advancement in Viacom’s distribution strategy.
Driven by the continued success of Advanced Marketing Solutions (AMS), advertising revenue in the US grew 1% for the full year, representing its first full year of growth in six years. For the quarter, the company’s US advertising revenue grew 6%, benefiting from 83% growth in AMS revenue.
Viacom International Media Networks has delivered a strong revenue growth, benefiting from SVOD and studio production gains.
On a constant currency basis, international revenue grew 2% for the full year and 15% for the quarter.
Nickelodeon Studios has announced a new multi-year output deal to produce original animated films and series for Netflix.
Viacom also increased global live event attendance +14% to more than 4 million people for the fiscal year.
At September 30, 2019, the gross debt outstanding was $8.74 billion, a 13% reduction from September 30, 2018. Adjusted gross debt was $8.09 billion.
For the full year ended September 30, 2019, net cash provided by operating activities declined year-over-year to $1.58 billion and free cash flow declined to $1.38 billion, driven by higher cash taxes and lower operating income.For more updates, be socially connected with us on
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