Paramount Pictures and Nickelodeon Movies made a global splash with "The SpongeBob Movie: Sponge Out of Water" (Photo: Business Wire)
Sumner M. Redstone, Executive Chairman of Viacom, said, "Viacom's outstanding brands deliver great entertainment content on every screen, from film to television, mobile and beyond. We have the global footprint and the expert leadership to continue our success."
Philippe Dauman, President and Chief Executive Officer of Viacom, said, "We are deeply committed to investing in more and more original content, expanding in international growth markets, where we are launching networks at a rapid pace, and adapting to changes in technology and consumer behavior. In the quarter, Viacom's Media Networks delivered higher advertising and affiliate revenues, and new hits like Lip Sync Battle set the stage for even more exciting, original programming across our networks. Paramount Pictures also continues to be a proven hit maker. The SpongeBob Movie: Sponge Out of Water was the first title from our brand new Paramount Animation division and a box office success around the world, and we look forward to the releases of Terminator Genisys and Mission: Impossible - Rogue Nation this summer.
“With our strategic realignment largely complete, Viacom is in excellent position to take full advantage of the many opportunities in the rapidly evolving media environment. The $175 million in savings to be achieved in fiscal 2015 and substantial ongoing annual benefit will allow us to move efficiently through the second half of the year and beyond."
Quarterly revenues declined 3% to $3.08 billion, driven by increases in Media Networks that were more than offset by declines in Filmed Entertainment revenues and the impact of foreign exchange. Excluding an unfavorable 2% impact of foreign exchange, revenues declined 1%. Media Networks revenues increased 3% to $2.45 billion, due to higher advertising revenues and affiliate fees. Absent an unfavorable 2% impact of foreign exchange, Media Networks revenues increased 5%. Domestic advertising revenues declined 5%, reflecting lower ratings. Worldwide advertising revenues rose 4%, reflecting an 80% increase in international advertising revenues driven by growth in Europe, principally from Channel 5, which was acquired in September 2014. Domestic affiliate revenues rose 5% and worldwide affiliate revenues grew 3%, primarily due to rate increases.
Filmed Entertainment revenues decreased 21% to $659 million, driven by declines in television license fees and home entertainment revenues that were impacted by the number and mix of available titles. Excluding an unfavorable 4% impact of foreign exchange, Filmed Entertainment revenues declined 17%. Theatrical revenues declined 10%, due to lower carryover revenues from releases in the prior quarter. Theatrical revenues from current quarter releases benefited from the performance of The SpongeBob Movie: Sponge Out of Water.
Quarterly adjusted operating income was $822 million, a 6% decline versus the prior year. Media Networks adjusted operating income declined 5%, as higher revenues were more than offset by increased programming and promotional expenses. Filmed Entertainment adjusted operating income was $1 million, reflecting the decline in revenues, partially offset by decreased expenses. Adjusted results exclude the impact of a $784 million charge related to the Company's previously-announced strategic realignment. Adjusted operating income results reflect a 1% adverse impact of foreign exchange.
Quarterly adjusted net earnings attributable to Viacom declined 3% to $467 million. Adjusted diluted earnings per share for the quarter increased 7% to $1.16, which reflects a $0.04 negative impact of foreign exchange.
For the quarter ended March 31, 2015, Viacom repurchased 10.9 million shares under its stock repurchase program, for an aggregate purchase price of $750 million. As of March 31, 2015, Viacom had 397 million shares of common stock outstanding.
At March 31, 2015, total debt outstanding was $13.23 billion, compared with $12.77 billion at September 30, 2014. The Company's cash balances were $306 million at March 31, 2015, a decrease from $1.0 billion at September 30, 2014.
You can read Viacom's press release announcing the company's Q2 2015 quarterly earnings in full, including tables of Viacom's statements and balance sheets, here on BusinessWire.com.
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