Viacom’s fiscal third-quarter revenues rose 8% to $3.36 billion thanks in part to growth in affiliate and ad revenues within its media networks segment.
Media networks revenues grew 2% to $2.56 billion as affiliate revenues rose 4% to $1.19 billion and advertising revenues rose 2% to $1.24 billion. While domestic revenues stayed mostly flat at $2.04 billion, international revenues rose 8% to $522 million, driven largely by the acquisition of Telefe.
Viacom’s domestic affiliate revenues rose 4% to $1.01 billion thanks to higher revenues from SVOD and other OTT agreements, along with rate increases, which helped to fight off a decline in subscribers. Meanwhile, international affiliate revenues increased 1% to $178 million.
However, domestic advertising revenues fell 2% to $955 million as higher pricing ran up against lower impressions. But international advertising revenues came through with big 14% growth to $280 million during the quarter.
“Among other recent successes, the Company entered into an unprecedented distribution and data partnership with Altice USA, secured a significant cross-platform talent agreement with award-winning writer, director and actor Tyler Perry and recorded quarterly year-over-year ratings growth across our Media Networks portfolio, with strong momentum at our flagship networks, including MTV. We also further delevered our balance sheet by redeeming over $1 billion of outstanding debt and completing the sale of our substantial interest in EPIX,” said Viacom CEO Bob Bakish in a statement.
In all, Viacom’s operating income fell 3% to $746 million, due in part to restructuring and programming charges of $59 million. However, net earnings from continuing operations attributable to Viacom rose 57% to $680 million, due largely to Viacom’s sale of its stake in EPIX.