Viacom Inc. reported financial results for the second quarter of fiscal 2018, with gains in operating income, particularly due to its international business.
Viacom saw the company’s total revenue for the quarter slip by 3%, falling to US$3.14 billion in the period that ended March 31, 2018.
Offsetting the drop were increases in operating income for Viacom, which rose 37% to $456 million, and VIMN revenue increased 1% to $2.43 billion in the quarter. Adjusted operating income for Media Networks, meanwhile, decreased 5% to $706 million in the quarter, reflecting higher segment expenses.
Viacom International Media Networks also posted a strong quarter, with new channel launches in the UK and Poland in addition to mobile distribution deals across the Nordics and Indonesia.
VIMN had also positioned itself for a wave of growth in India after selling a 1% stake in joint venture Viacom18 to partner Network18 to further align its operational strengths.
Viacom’s flagship brands grew audience share year-over-year for a fourth consecutive quarter. MTV had its third consecutive quarter of year-over-year growth in primetime audience share and ratings, driven by eight of the top 40 unscripted cable series. Jersey Shore Family Vacation broke records as the most watched unscripted debut on cable since 2012.
BET had double-digit year-over-year growth in audience share and ratings, while its online footprint saw a 120% increase in views on social platforms. VH1, meanwhile, saw its 11th consecutive quarter of year-over-year ratings improvement, while TV Land and CMT each recorded their highest-rated quarters in four years.
“Viacom continued to accelerate progress against its strategic priorities, delivering improvements across key metrics in the quarter,” said Bob Bakish (pictured), Viacom president and CEO, in a statement. “Our flagship brands increased audience share among important demos for the fourth consecutive quarter, and we saw sequential improvements in domestic advertising and affiliate revenue performance.
“Internationally, Viacom continued its winning streak, achieving double-digit revenue and profit gains in the quarter while expanding its global footprint through new channel launches and innovative mobile distribution deals across Europe and Asia,” he added. “Our cost transformation initiatives are well under way; we anticipate more than $100 million in cost savings in fiscal 2018, and now expect over $300 million in run-rate savings in fiscal 2019 and beyond.”