The company’s Filmed Entertainment division also saw significant increases in licensing revenues for the full year, both domestically and internationally.
GLOBAL–Viacom’s plan to stabilize and revitalize the company is proving to be successful, with Q4 revenues up 3 percent to nearly $3.32 billion and full-year revenues increasing 6 percent to $13.26 billion.
For Q4, revenue increases were due in large part to gains across the company’s Media Networks and Filmed Entertainment segments. Furthermore, operating income grew 112 percent to $705 million, reflecting growth in worldwide advertising revenue and improved Filmed Entertainment operating results, while net earnings from continuing operations attributable to Viacom grew 167 percent to $674 million.
For the full year, revenue gains also reflected growth across the company’s Media Networks and Filmed Entertainment segments. Furthermore, operating income decreased 1 percent to $2.49 billion, reflecting higher segment expenses partially offset by revenue growth, while net earnings from continuing operations increased 3 percent to $1.51 billion, driven by a decrease in the adjusted effective tax rate.
In the company’s Media Networks division, quarterly revenues increased 3 percent to $2.55 billion, driven by growth in advertising revenues (which increased 6 percent to $1.22 billion). International revenues grew 24 percent to $593 million and domestic revenues decreased 2 percent to $1.96 million.
Meanwhile, full-year revenues in the Media Networks division increased 2 percent to $10.10 billion, reflecting gains across all segment revenue streams. International revenues also increased 12 percent to $2.13 billion (which was driven by the acquisition of Telefe), and domestic revenues declined 1 percent to $7.97 billion.
In the company’s Filmed Entertainment division, quarterly revenues were up 2 percent to $789 million, which was driven by growth in licensing revenues and partially offset by lower theatrical revenues. Furthermore, international revenues increased 13 percent to $472 million, while domestic revenues fell 11 percent to $317 million.
The company also reported that theatrical revenues decreased 43 percent to $115 million due to a comparison with the strong performance of Star Trek Beyond in the prior year quarter. Licensing revenues, meanwhile, grew 30 percent to $423 million due to higher profits from film licensing arrangements as well as Paramount Television productions.
For the Filmed Entertainment division’s full year, revenues grew 24 percent to $2.39 billion, reflecting increases across all segment revenue streams. Theatrical revenues increased 34 percent to $808 million due to the strong international performance of Transformers: The Last Knight.
Licensing revenues for the division’s full year were also up 30 percent to $1.32 billion, with revenues primarily driven by Paramount Television productions. Furthermore, domestic and international licensing revenues increased 32 percent and 13 percent, respectively.
“Viacom is stronger and our momentum continues to build,” says Bob Bakish, president and chief executive officer, Viacom. “to accelerate our transition to long-term, sustainable growth, we are ramping up the evolution of Viacom’s media business to better serve next generation platforms and solutions while continuing to diversify our business and strengthen our global portfolio of flagship brands. In the coming year, we will continue to focus on unleashing the full creativity and energy of Viacom to create greater value for our shareholders and audiences.”