Viacom, Inc. Class B (NASDAQ: VIAB) have exceeded market expectations returning strong trading figures in their most recent update.
MTV Owner Viacom, is currently inn the process of formalizing a deal to merge with former partner CBS Corp (NYSE: CBS). The planned merger between CBS Corp and Viacom, is set to be formalized and completed by early December.
Shares of Viacom slipped 2.24% during Thursday trading to $22.05. 14/11/19 13:33BST.
The company also reported a 6% rise in domestic advertising revenue on a constant currency basis. However, revenue from its filmed entertainment division, which includes Paramount Pictures, fell 14%.
Viacom had experienced external success as well, which has contributed to increasing revenues.
Viacom have told shareholders that they have produced content for Apple (NASDAQ: AAPL), Hulu who are owned by Walt Disney (NYSE: DIS) and HBO Max who AT&T (NYSE: T) own.
Shareholders will be further pleased, as it was reported earlier this week that Viacom reported a multi-year deal with Netflix (NASDAQ: NFLX) to produce animated TV shows.
Net earnings from continuing operations for Viacom fell to $303 million (£236.8 million), or 75 cents per share. In the fourth quarter ended Sept. 30 from $386 million, or 96 cents per share, a year earlier.
Total revenue fell to $3.43 billion from $3.49 billion, but was above the average estimate of $3.41 billion, according to IBES data from Refinitiv.
Excluding items, the company earned 79 cents per share, above the average analyst estimate of 75 cents per share.
The new partnerships that Viacom have agreed with rivals such as Disney and Netflix will thoroughly excite shareholders, which could be part of a response to stimulate Netflix subscribers after a period of slow trading.
With a well established base, Viacom seem to have scored a good deal to expand into other sectors of broadcasting television and entertainment, which could boost long term returns.
“Our strong performance in the fourth quarter capped off a pivotal year for Viacom and reflects the successful execution of our strategic priorities to evolve the company for the future,” CEO Bob Bakish said. “As we look to the future of a combined ViacomCBS, we’re thrilled with the momentum we have to create one of the world’s preeminent content companies.”