Viacom in fiscal 2Q16
Viacom (VIAB) reported its fiscal 2Q16 results on April 28, 2016. It reported revenues of $3 billion, a decrease of 3% YoY (year-over-year), and net income of $303 million. The company announced a diluted EPS (earnings per share) of $0.76. On April 28, VIAB stock fell 3.2%. It has fallen 40.1% in the last one year.
Viacom’s Media Networks segment comprised about 79% of the company’s total revenues of $3 billion in fiscal 2Q16. Its revenues were $2.4 billion, a decline of 3% YoY. It saw a sharp decline of 4% in advertising revenues and a 1% decline in affiliate fees.
Viacom had a 5% decrease in advertising revenues in the United States. However, the company stated during its earnings call that it expects a strong ad upfront this year, as the company has stepped up its programming at Comedy Central and MTV. The company also expects its clients for Viacom Vantage to triple. It believes it has “significant opportunities for overall growth” after its recent launch of Viacom Vantage Studio Edition, a data analytics advertising product specifically made for the studio category.
The two key products in the company’s ad portfolio include Viacom Velocity and Viacom Vantage.
Viacom Velocity helps advertisers design better marketing campaigns. It has a proprietary tool, the Echo Social Graph, that “measures the effectiveness and virality of custom creative marketing campaigns.” Earlier this year, the Viacom Velocity team teamed up with Canvs to track emotionality across various social media platforms, including Twitter (TWTR) and Facebook (FB). The purpose was to provide sentiment analysis.
Viacom Vantage was unveiled last year. It offers advertisers campaign measurements and enhanced audience targeting.
Many companies are acquiring ad technology companies. One example is 21st Century Fox’s (FOXA) acquisition of TrueX.
Viacom accounts for 0.08% of the SPDR S&P 500 ETF (SPY). If you’re interested in exposure to the computers sector, note that SPY has 3.5% exposure there.
In the next part of the series, we’ll look at Viacom’s positive outlook for its affiliate fees.