American multinational mass media conglomerate Viacom reported a dip in income despite improvements across several revenue streams ahead of the company’s upcoming merger with CBS, expected to be finalized next month.
Overall Viacom revenue was down in Q4, ending Sept. 30, by 1% at US$3.43 billion compared to $3.49 billion in Q4 last year.
However, gains were made on the advertising side, with domestic revenues up 6% at $1.33 billion, while earnings per share fell during the quarter from $0.79 per share from $0.99.
Meanwhile, the quarter saw Viacom-owned Paramount Pictures return to full-year profitability for the first time since 2015, with $3.08 billion in total revenues, up 1% over last year. However, quarterly revenue was down 14% year over year for Paramount, at $851 million.
“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,” said president and CEO Bob Bakish (pictured).
“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.”