Viacom, Inc. (NASDAQ:VIAB) Q1 2015 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 08:30 am ET


Viacom, Inc. (NASDAQ:VIAB) Q1 2015 Earnings Conference Call - Final Transcript


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Good day everyone, and welcome to the Viacom First Quarter 2015 Earnings Release Teleconference. Today's call is being recorded. At this time, I would like to turn the call over to the Senior Vice President of Investor Relations, Mr. Jim Bombassei. Please go ahead, sir.

James Bombassei

Good morning everyone and thank you for taking the time to join us for our earnings call for our December quarter. Listening from Los Angeles is our Chairman, Sumner Redstone and joining us in New York are Philippe Dauman, our President and CEO; Tom Dooley, our Chief Operating Officer; and Wade Davis, our Chief Financial Officer.

(Forward-Looking Cautionary Statements)

Today's remarks will focus on adjusted results. Reconciliations for non-GAAP financial information discussed on this call can be found in our earnings release or on our website.

And now, I'll turn the call over to Philippe.

Philippe Dauman

Thank you Jim and good morning everyone. Thanks for joining us to discuss the first quarter of our 2015 fiscal year. Viacom once again had a solid quarter. We drove revenue growth across our business and continued to evolve and adapt to meet the opportunities of an increasingly digital and multi-platform landscape. We also maintained our strong balance sheet while continuing to return capital to our shareholders.

Let's take a quick look at our first quarter financial performance. Revenues increased 5% to $3.34 billion due to growth across the board, all of our major drivers affiliate fees, advertising, theatrical distribution, and home entertainment saw increases in the quarter. Adjusted operating income was flat for the quarter at $959 million. Adjusted net earnings were $538 million and adjusted diluted earnings per share increased 8% to $1.29, the highest ever for a December quarter.

These results are a reflection of our commitment to produce great multiplatform content while efficiently and effectively managing our operations. This commitment has been fundamental to our success and will drive our growth in the future. It is no secret that there are far reaching shifts taking place in our industry. As the industry evolves it is more important than ever to focus on Viacom's significant strengths.

Viacom has an unmatched portfolio of iconic and powerful brands and is a leading creator of the content that drives the industry ecosystem. Viacom's current distribution partnerships are strong

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with most extending well into the future and the ranks of new entrants are increasing rapidly. Viacom's global footprint is broad and growing. Viacom is leading the rapid evolution to new measurement and monetization models that will unlock significant value for us in particular. We produce distinct high end video for screens of all sizes, content that drives greater consumer engagements and is highly valued by advertisers. We invest billions in original programming year in and year out. Included in our programming for this year in the U.S. alone are well over 200 freshly produced series and events.

Turning back to the results worldwide media networks revenues increased 4% with a 6% increase in affiliate revenues. Domestic affiliate fees rose 8% consistent with