Upcoming AWS Coverage on Live Nation Entertainment Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 19, 2017 / Active Wall St. announces its post-earnings coverage on Viacom, Inc. (NASDAQ: VIAB). The Company posted its second quarter fiscal 2017 financial results on May 04, 2017. The media and entertainment Company exceeded revenue and earnings expectations. Register with us now for your free membership at:

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One of Viacom's competitors within the Entertainment - Diversified space, Live Nation Entertainment, Inc. (NYSE: LYV), released on May 04, 2017, its financial results for the three months ended March 31, 2017. AWS will be initiating a research report on Live Nation Entertainment in the coming days.

Today, AWS is promoting its earnings coverage on VIAB; touching on LYV. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 31, 2017, Viacom reported revenues of $3.26 billion, an increase of 8%, compared to revenue of $3.00 billion for Q2 FY16, reflecting gains across all Filmed Entertainment revenue streams, increases in worldwide affiliate revenues, and continued strength in international Media Networks revenues. The Company's revenue numbers came in ahead of analysts' consensus of $3.03 billion.

For Q2 FY17, Viacom's operating income decreased 43% to $332 million, and adjusted operating income increased 4% to $612 million. The Company's reported operating income reflects restructuring and programming charges of $280 million resulting from the execution of new strategic initiatives, including the prioritization of six flagship brands: BET, Comedy Central, MTV, Nickelodeon, Nick Jr., and Paramount.

Net earnings attributable to Viacom decreased to $121 million, or $0.30 per share, for Q2 FY17 compared to $303 million, or $0.76 million, for Q2 FY16. The Company's adjusted net earnings attributable to Viacom increased to $317 million, or $0.79 per share, for the reported quarter compared to $303 million, or $0.76 per share. The Company's earnings numbers came in above Wall Street's estimates of $0.59 per share.

Segment Results

During Q2 FY17, Viacom's Media Networks revenues increased 1% on a y-o-y basis to $2.39 billion. Excluding foreign exchange, which had a 1% unfavorable impact, worldwide revenues increased 2%. Domestic revenues declined 2% to $1.92 billion, while international revenues grew 11% to $478 million.

Media Networks' affiliate revenues grew 2% to $1.16 billion in Q2 FY17, with domestic and international affiliate revenues increasing 1% to $975 million and 10% to $181 million, respectively. The growth in domestic revenues principally reflects rate increases, partially offset by a modest decline in subscribers and a decline in revenues from SVOD and other OTT agreements.

For Q2 FY17, the segment's Advertising revenues decreased 1% to $1.11 billion. Worldwide advertising revenues increased 1%, excluding a 2% unfavorable impact from foreign exchange. Domestic advertising revenues decreased 4%, driven by higher pricing more than offset by lower impressions. International advertising revenues increased 11%. Ancillary revenues remained flat at $129 million in Q2 FY17. Domestic ancillary revenues decreased 8% to $70 million while international ancillary revenues increased 11% to $59 million.

For Q2 FY17, Media Networks reported adjusted operating income of $747 million, down 7% on a y-o-y basis.

During Q2 FY17, Viacom's Filmed Entertainment revenues grew 37% to $895 million, reflecting gains in theatrical, licensing, home entertainment, and ancillary revenues. Domestic revenues increased 25% to $458 million in the reported quarter, while international revenues increased 51% to $437 million.

Theatrical revenues rose 10% to $238 million, with revenues from current quarter releases up 73% on a y-o-y basis. Domestic theatrical revenues decreased 45%, while international theatrical revenues grew 98%, reflecting the strong international performance of xXx: Return of Xander Cage. Foreign exchange had a 3% favorable impact on international theatrical revenues.

Filmed Entertainment's Licensing revenues increased 45% to $347 million in Q2 FY17, primarily driven by Paramount Television production, as well as higher revenues from licensing arrangements with pay television and SVOD distributors. Domestic licensing revenues grew 85%, while international licensing revenues increased 24%.

Home entertainment revenues increased 29% to $198 million in Q2 FY17, reflecting the number and mix of current quarter releases. Domestic and international home entertainment revenues increased 23% and 49% respectively. Ancillary revenues increased 149% to $112 million, primarily driven by the sale of a partial copyright interest in certain current year releases related to a film slate financing arrangement. Domestic ancillary revenues increased 158% to $93 million while international ancillary revenues increased 111% to $19 million.

Filmed Entertainment reported an adjusted operating loss of $66 million in Q2 FY17 compared to $136 million in the prior year's same quarter. The improvement principally reflected the various revenue increases, partially offset by higher operating expenses.

Balance Sheet

At March 31, 2017, Viacom's total debt outstanding was $12.19 billion compared with $11.91 billion at September 30, 2016. In the reported quarter, the Company continued to implement its plan to strengthen its balance sheet, reduce leverage and enhance liquidity, issuing $1.3 billion of hybrid securities, redeeming $1.4 billion of senior notes, and executing on the sale of non-core assets, including the pending sale of its stake in EPIX.

Viacom's cash balance was $671 million at March 31, 2017, an increase from $379 million at September 30, 2016. In the six months, net cash provided by operating activities increased $121 million, or 43%, to $405 million, free cash flow increased $80 million, or 35%, to $310 million and operating free cash flow increased $113 million, or 49%, to $343 million.

Stock Performance

At the close of trading session on Thursday, May 18, 2017, Viacom's stock price rose 1.01% to end the day at $33.99. A total volume of 4.96 million shares were exchanged during the session, which was above the 3-month average volume of 4.54 million shares. The Company's shares are trading at a PE ratio of 11.27 and have a dividend yield of 2.35%. The stock currently has a market cap of $13.77 billion.

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