Viacom, Inc. (NYSE:VNV CL) Q2 2016 Earnings Conference Call - Preliminary Transcript

Apr 28, 2016 • 08:30 am ET

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Viacom, Inc. (NYSE:VNV CL) Q2 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day everyone, and welcome to Viacom's Second Quarter 2016 Earnings Release Teleconference. Today's call is being recorded. At this time, I'd like to turn the call over to the Senior Vice President of Investor Relations, Mr. Jim Bombassei. Please go ahead.

Executive
James Bombassei

Good morning, everyone, and thank you for taking the time to join us for our March quarter earnings call. Joining me for today's discussion are Philippe Dauman, our Executive Chairman, President, and CEO; Tom Dooley, our Chief Operating Officer; and Wade Davis, our Chief Financial Officer.

Please note that in addition to our press release, we have slides and trending schedules containing supplemental information available on our website. I want to refer you to page number two in the web presentation and remind you that certain statements made on this call are forward-looking statements, and involve risks and uncertainties. These risks and uncertainties are discussed in more detail in our filings with the SEC. 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.

Executive
Wade Davis

Thank you, Jim. Good morning, everyone. Thank you for joining us to discuss Viacom's results for 2016 second quarter. As we move forward, we have several notable areas of strength, including ratings improvement in key network, solid visibility on long-term affiliate revenue growth, increasing value generated from the growing use of technology and data, and continued growth in our international business. We made solid progress in the quarter, driving significant change across our brands to increase the value of our content and better position us for the future.

There are four major strategic objectives driving change and future growth at Viacom. First and foremost, we continue to make substantial investments in content, specifically original content, long-term imperative that is generating clear results and building long-term value. This includes steadily escalating content investments in television and film, as well as short-form mobile content. Second, we are upgrading and expanding our already substantial data capabilities to deliver more accurate metrics for advertisers and greater monetization potential. We are out in the lead in this area and are beginning to reap the benefit which will accelerate as we go forward.

Third, we are maximizing our opportunities for revenue growth with traditional distributors while moving forward with new forms of distribution. Our content ownership and the popularity of our content on new platforms and social media are providing new options as the ecosystem evolves. And fourth, we continue to look at strategic options to enhance our competitive position and unlock the value of our businesses. Our exploration of a strategic minority investor in Paramount is an excellent example, as is our continued international expansion.

Looking at the numbers, in the second quarter, revenues declined 3% to $3 billion. Adjusted operating income was $586 million, and adjusted net earnings from continuing operations were $303 million. Adjusted diluted earnings per share from continuing operations declined