Viacom, Inc. (VIAB) Slides on Drop in First Quarter Earnings
Shares of New York, NY, based Viacom, Inc. (VIAB) fell on Tuesday, against the backrop of a mild down day in stocks overall. Viacom's stock was down 21.48%, falling $8.99 per share, to close at $32.86, on volume of 15,731,400 shares. The company's stock fell after it announced that it experienced declines in its revenue and earnings for its fiscal 2016 first quarter.
Founded in 2005, Viacom, Inc. is a global entertainment content company, providing television programs, motion pictures, short-form video, applications, games, brands for consumer products, social media and other entertainment content.
On Tuesday, Viacom announced the results of its 2016 fiscal first-quarter, ended December 31, 2015. Revenues totaling $3.154 billion were 6% lower than the $3,344 billion the company produced in the same quarter one year earlier. Meanwhile, quarterly adjusted net earnings fell to $470 million, down 13% from $538 million in the same period a year earlier. Adjusted diluted earnings per share came in at $1.18, down 9% from $1.29 per share for the fiscal 2015 first quarter.
Viacom's quarterly adjusted operating income declined to $839 million, falling 13% from one year ago. The company attributed the decline to the timing and mix of current quarter filmed entertainment releases, in addition to lower revenues from films in release across post-theatrical distribution windows.
On the positive side, the company saw significant sequential improvement in domestic advertising sales, while the companies Paramount division has had a strong start to the 2016 fiscal year. As such, the company downplayed the decline in revenue and earnings for the quarter.
"2015 was a challenging year operationally as we redesigned ourselves and adapted to significant industry disruption," said Viacom Executive Chairman, President and CEO, Philippe Dauman. "Our first fiscal quarter of 2016 reflected these challenges. However, our revitalized organization and our investments in content, technology and strategic innovation are now beginning to bear fruit. Although our industry continues to face headwinds, we expect our positive momentum to continue and build throughout the year."
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