Feb 05, 2019
By Stuart Winchester
Evolution Continues on Strong Execution Across the Business, and Agreement to Acquire Pluto TV
Viacom unveiled financial results today for its first quarter of fiscal 2019, delivering growth in key financial metrics for the second consecutive quarter and underscoring the breadth of the company’s evolution. Consolidated revenue, adjusted operating income, and adjusted diluted earnings-per-share grew for the second consecutive quarter, and the company is on track to continue delivering these improvements for the full year.
“Through strong execution of our strategic priorities, we delivered another quarter of solid financial and operational results,” said Viacom President and CEO Bob Bakish. “Beyond the growth at our flagship networks and the resurgence of Paramount Pictures, we took a major step forward in our evolution with an agreement to acquire Pluto TV. This service will create a scaled direct-to-consumer offering for Viacom, and expand our opportunities in next-generation distribution and advanced advertising. With this momentum, we are progressing toward a return to topline growth in 2019 as Viacom continues to evolve for the future.”
Stocked with a collection of media networks that lead key U.S. viewership demos and a resurgent and iconic movie studio in Paramount Pictures, Viacom has reoriented its business toward growth initiatives that build on the depth of its intellectual property (IP), its global footprint and its advanced advertising capabilities. Among these are an improving domestic affiliate business, strong growth in its Advanced Marketing Solutions (AMS) portfolio that is driving sequential increases in domestic advertising revenues, and expansion of its premium content studio production business and digital initiatives such as Viacom Digital Studios (VDS).
Pending the closing of the deal, it’s the addition of Pluto TV to Viacom’s portfolio that perhaps best demonstrates the company’s ambitions and potential. The largest free streaming television service in the country, Pluto TV promises to accelerate Viacom’s evolution by acting as a direct-to-consumer home for the company’s deep content library and an stimulant for its AMS business. Pluto TV also provides an instant promotional platform for both Viacom’s digital products and the company’s distribution partners.
Here is a closer look at some of these areas of strength that are driving Viacom’s evolution in 2019: