Viacom (VIAB) reported a 43% dip in earnings for the fourth quarter due to higher costs and expenses as well as a gain on the asset sale in the prior-year quarter. The results exceeded analysts’ expectations. Following this, the stock inched up over 2% in the premarket session.
Net income from continuing operations dropped 43% to $386 million or $0.96 per share. Non-GAAP earnings from continuing operations jumped 29% to $0.99 per share.
Net revenue grew 5% to $3.5 billion, driven by double-digit gains at Paramount. The company successfully turned around its core business, with dramatic improvements across its networks, at Paramount and in distribution.
Paramount Pictures continued its momentum in the fourth quarter with strong growth at the box office and in television production. It has improved adjusted operating income for seven straight quarters, with growth benefiting from the performances of Mission: Impossible – Fallout, A Quiet Place and Book Club.
The double-digit gains in total revenues from Paramount Pictures were driven by a nearly three times the growth in worldwide theatrical revenues and growth in worldwide licensing.
Media Networks global affiliate growth partially offset lower worldwide advertising revenues. Domestic revenues held flat, while the impact of foreign exchange drove lower international revenues. Affiliate revenues were driven by domestic growth and double-digit international gains.
The company said progress in operating performance combined with de-levering actions strengthened the balance sheet and drove improvements across key metrics in the full year.
Shares of Viacom Class B common stock ended Thursday’s regular session up 0.13% at $31.83 on the Nasdaq. The stock has risen over 3% in the year so far and over 29% in the past year.