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Viacom beats by $0.20, beats on revs; presents new strategic plan, including focus on six priority flagship brands and deeper integration of Paramount Pictures
- Reports Q1 (Dec) earnings of $1.04 per share, $0.20 better than the Capital IQ Consensus of $0.84; revenues rose 2.5% year/year to $3.23 bln vs the $3.19 bln Capital IQ Consensus. This increase reflects improved theatrical revenues, a return to growth in domestic affiliate revenues, continued strength internationally and ancillary revenue growth. Operating income declined 16% to $706 million, and adjusted operating income declined 11% to $748 million.
- Today Viacom also provided an update on the Company's strategic priorities following a comprehensive review of its operations and performance. Going forward, Viacom will be focused on a five-point plan to:
- Put the full power of Viacom behind six flagship brands: BET, Comedy Central, MTV, Nickelodeon, Nick Jr. and Paramount
- Revitalize and elevate approach to content and talent
- Deepen partnerships to drive traditional revenue
- Make big moves in the digital world and physical world
- Continue to optimize and energize the organization
- Viacom's other brands - some of which hold strong positions in their categories and maintain diverse and loyal followings - will be realigned to reinforce the six flagship brands.
- The company has also identified opportunities to bring the best of Paramount to the network business, and the best of the network business to Paramount. Paramount's film slate will now include co-branded releases from each of the flagships, along with Paramount branded films focused on franchises, tentpoles and other projects. In an initial step, the company today is announcing a commitment between Nickelodeon and Paramount to move forward on a slate of four films. The first of these films, Amusement Park, will premiere in theaters in summer 2018 and will launch a TV series on Nickelodeon the following year.
- Additionally, Spike will be rebranded in early 2018 as The Paramount Network, and will serve as Viacom's premier general entertainment brand. The Paramount Network will take Spike's strong and growing programming expertise and amplify it with the globally-recognized Paramount brand - an iconic symbol of cinematic production with a history of rich, compelling storytelling. The network will leverage the very best in Viacom original scripted and non-scripted programming, and incorporate even more high-quality original and third party programming.
- Viacom today announced plans to invest in new content experiences, and will establish its first ever dedicated short-form content unit, building on existing programming as well as all-new original IP. In addition, the company plans to further extend the reach of Viacom's brands through live experiences and consumer products - creating valuable new channels for marketing, talent development and connecting with audiences.