Viacom said fourth-quarter net income slipped 8.9%, even as revenue from the company’s various cable networks rose due to stronger affiliate fees and filmed-entertainment revenue rose
The New York owner of MTV, Comedy Central and VH1, said net income came to $732 million, or $1.72 a share, compared with $804 million, or $1.68 a share. The company cited higher interest expense as a factor in the decline. Stripping out one-time items, Viacom’s net income was $1.71 a share.
Wall Street had expected earnings of $1.68 per share.
Revenue in the period rose 9% to $3.99 billion, compared with $3.65 billion in the year-earlier period. The company said its results were bolstered by increases in fees from distributors of its programming, as well as revenue from its movies, even as it saw declines in advertising revenue.
Revenue from the company’s media networks rose 8% to $2.66 billion, compared with $2.46 billion in the year-earlier period. Domestic and worldwide affiliate revenues increased 21% and 22%, Viacom said. U.S. advertising revenues fell 5%, owing to shortfalls in ratings. International advertising rose 33%, thanks to revenue from Viacom’s acquisition of Channel 5 in September. Worldwide ad revenue fell 2%.
Revenue from the company’s filmed-entertainment unit rose 12% to $1.36 billion, compared with $1.2 billion in the year-earlier period. Filmed Entertainment revenues grew 12% to $1.36 billion, due to growth in theatrical revenue, which included strong performance from current releases in the quarter as well as carryover performance by “Transformers: Age of Extinction.”