Viacom Inc. (VIAB,VIA) reported Friday a 42 percent increase in profit for the second quarter from last year as lower expenses more than offset a decline in revenues.
However, adjusted earnings per share topped analysts’ expectations, while quarterly revenues missed their estimates.
Net earnings attributable to Viacom for the second quarter decreased to $363 million or $0.90 per share from $256 million or $0.64 per share in the year-ago period.
Adjusted earnings from continuing operations were $0.95 per share, compared to $0.92 per share in the same period last year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.80 per share. Analysts’ estimates typically exclude special items.
Revenues for the quarter declined 6 percent to $2.96 billion from $3.15 billion in the same quarter last year. Wall Street analysts had a consensus revenue estimate of $3.06 billion for the quarter.
Media Networks revenues decreased 7 percent to $2.27 billion in the quarter, due to a 6 percent drop in affiliate revenues and a 7 percent decline in advertising revenues.
Filmed Entertainment revenues declined 1 percent from last year to $730 million as strong growth in theatrical and ancillary revenues was offset by lower licensing revenues. Theatrical revenue more than tripled, driven by strong carryover performance and current quarter releases.
Theatrical revenue gains continued to be driven by performances of Paramount Pictures’ “Bumblebee” and “What Men Want.”
“This quarter we executed strongly on our strategic priorities and made significant progress in advancing our evolution. We grew viewership share at our flagship networks, accelerated our Advanced Marketing Solutions and continued our momentum at Paramount Pictures,” Bob Bakish, President and CEO of Viacom said.