logo
  

Viacom Q3 Profit Climbs, Yet Misses View; Doubles Stock Buyback Program

Media conglomerate Viacom, Inc. (VIA,VIAB) posted higher third-quarter net earnings attributable to the company of $643 million, or $1.31 a share, compared with $534 million, or $1.01 a share, in the prior-year quarter. Adjusted net earnings from continuing operations attributable to Viacom totaled $635 million, or $1.29 per share. On average, 31 analysts polled by Thomson Reuters expected earnings per share of $1.30 for the quarter. Analysts' estimates typically exclude one-time items.

Operating income rose 20% year-over-year to $1.09 billion, as higher Media Networks affiliate fees and advertising revenues more than offset the impact of increased Filmed Entertainment distribution costs for two tentpole releases in the quarter.

The firm clocked revenues of $3.69 billion for the quarter, up 14% from the previous year's $3.24 billion, reflecting higher revenues in both the Media Networks and Filmed Entertainment divisions, and came in above consensus estimate of $3.58 billion.

Further, the board has approved a significant expansion of the Class B stock repurchase program to $20 billion, from $10 billion. Under this expansion, the firm anticipates continuing its ongoing quarterly pace of share buybacks. In addition, over the next several months Viacom would augment its overall buyback pace with purchases of an additional $2.0 billion of shares under the $20 billion program.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT