Several key numbers were down, although cost-cutting at Paramount appears to have enabled Viacom to slightly beat the Street’s profit expectations. The company’s fiscal Q2 net earnings from continuing operations came to $489M, -18.4% vs the period last year, on revenues of $3.14B, -5.9%. Analysts thought revenues would reach $3.19B. But earnings at 96 cents per share were a penny above forecasts. At Viacom’s core pay TV networks operation, revenues increased 2% to $2.23B while operating income fell 2% to $873M. Domestic affiliate revenues were up 3%, but the company says that if you factor out the streaming deals that helped last year’s results the number would be up by a low-double-digit percentage. Ad sales in the U.S. and abroad were up 2% — an upturn that many investors wanted to see after last year’s ratings declines at Nickelodeon. Filmed entertainment was the weakest link with revenues -20% to $941M and operating income -43% to $65M. Viacom says its worldwide theatrical revenues fell 15% without a film that provided the same boost it saw last year from Mission: Impossible — Ghost Protocol.
Meanwhile home entertainment sales fell 38% “due to the number and mix of titles released, and lower carryover and catalog revenues,” it says. CEO Philippe Dauman cheered ratings growth at “several networks.” He adds that Paramount is “executing on its strategic plan, and successfully positioned G.I. Joe: Retaliation, Hansel And Gretel: Witch Hunters and Pain & Gain for global success” while audiences await “our upcoming tentpole releases — Star Trek Into Darkness and World War Z.”