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

Aug 04, 2016 • 08:30 am ET


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


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Good day, everyone, and welcome to the Viacom Third Quarter 2016 Earnings Release Call. Today's call is being recorded.

At this time, I would like to turn the conference over to SVP of IR, Mr. Jim Bombassei. Please go ahead, sir.

James Bombassei

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

Please note that in addition to our press release, we have slides and trending schedules containing supplemental information available on our website. (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. Welcome to Viacom's third quarter earnings call. As you know, since our last call, we have been subject to controversy relating to governance which has obviously created an overhang for our company.

Last week, courts in Massachusetts and Delaware rejected motions to dismiss allowed discovery to proceed and scheduled trials to take place in October. We view these favorable court rulings as positive steps that move us ahead to a resolution. In light of the litigation, we won't be able to comment further on this topic during today's call.

Meanwhile, Viacom continues to focus on making progress against our strategic plans. We are increasing our investments in more and more original content across multiple platforms, extending our lead in sophisticated data products, building engaging new consumer experiences through innovative, thoughtful distribution partnerships, as well as new consumer products, recreation and hospitality initiatives, expanding our formidable international presence; and forging new strategic paths, including a potential partnership to unlock the value of Paramount and provide competitive advantages for the studio and Viacom overall.

These initiatives are the most recent manifestation of a careful, comprehensive and consistent vision for Viacom that we've pursued since I became CEO in 2006 to focus on original content, enhance our distribution revenues and build a robust international business while adapting to change. That job is never done, nor is it easy.

There are disruptive challenges in our industry, particularly for those companies like Viacom that focus on younger demographics. But we are having increasing success at several of our brands and we are leveraging those learnings to accelerate that success at other properties. Wade and Tom will go into the numbers in a moment. First, let me review some of the drivers of our results for the quarter and what lies ahead.

In ad sales, we concluded a strong upfront. More advertisers committed early instead of waiting for the scatter market later when inventory is scarce. This movement and ratings progress at core networks, as well as our new advertising products resulted in mid to high-single digit price and volume increases.

Our end-to-end data-driven marketing solutions