Viacom stock lost over 7.8% in the after-hours session on August 3rd, 2017 post their third quarter update. The group’s Operating income lost 3% yoy to $746 million in the third quarter of 2017 on the back of restructuring and programming charges of $59 million, due to the execution of strategic initiatives at Paramount. Moreover, their Media networks domestic advertising revenues lost 2% yoy to $955 million, despite higher pricing, due to lower impressions. But, International advertising revenues rose 14% yoy to $280 million during the quarter.
On the other hand, overall Media Networks revenues grew only 2% to $2.56 billion during the third quarter, while affiliate revenues rose 4% yoy to $1.19 billion. Advertising revenues enhanced 2% yoy to $1.24 billion during the third quarter of 2017. Domestic revenues were flat at $2.04 billion, and international revenues rose 8% to $522 million. Overall Revenues rose 8%, or $257 million, to $3.36 billion during the third quarter of 2017 driven by Filmed Entertainment and Media Networks segments.
Adjusted operating income surged 5% yoy to $805 million during the quarter while Net earnings from continuing operations attributable to Viacom rose 57% yoy or $248 million, to $680 million in the quarter, boosted by firm’s investment in EPIX gains. Adjusted net earnings from continuing operations attributable to Viacom enhanced 12%, or $52 million, to $471 million, boosted by the rising in tax-effected adjusted operating income. Diluted earnings per share rose $0.60 to $1.69, and adjusted diluted earnings per share enhanced $0.12 to $1.17 during the period.
Viacom made a distribution and data partnership with Altice USA, got a major cross-platform talent agreement with award-winning writer, director and actor Tyler Perry during the quarter. They recorded quarterly year-over-year ratings growth across their Media Networks portfolio, driven by solid momentum at their flagship networks, including MTV. They also redeemed over $1 billion of outstanding debt while finished the sale of their substantial interest in EPIX. The group’s cash balance rose to $425 million as at June 30, 2017, as compared to $379 million in the prior corresponding period.