Dec 02, 2019

By Stuart Winchester
Paramount Returns to Profitability While Domestic Ad Sales, Domestic Affiliate Sales grow full-year revenue.

Quick Takeaways

Paramount profitability: Paramount returned to full-year profitability for the first time in four years thanks to the strength of its balanced slate and the success of Paramount Television.

Domestic Ad Sales growth: Viacom achieved 6% revenue growth in the quarter and delivered full-year revenue growth for the first time in six years.

Advanced Marketing Solutions (AMS) grew revenue 83% in the quarter and 76% for the full year, further demonstrating how Viacom has evolved the Ad Sales business to thrive beyond linear.

Domestic Affiliate Revenue grew 1% in the quarter and for the full year, demonstrating Viacom’s strong execution in a challenging environment.

Pluto TV Continues to Scale: The leading ad-supported streaming TV service in the U.S. has grown domestic monthly active users to approximately 20M, or nearly 70%, this calendar year.

Viacom reported fourth quarter and fiscal 2019 earnings this morning, delivering on its objectives to grow domestic affiliate and domestic ad sales revenue for the full year and return Paramount to profitability.

Viacom President and CEO Bob Bakish said, “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.”

Continued improvement at Paramount

Paramount grew full-year adjusted operating income $117 million year-over-year, reflecting a balanced and growing slate, increased monetization of its library, and the continued success of its Paramount Television production business.

The studio’s 2020 film slate includes several key franchises, including A Quiet Place 2, a new SpongeBob movie, and Top Gun: Maverick.

Paramount Television, with 26 shows ordered or in production, continues to crank out hits such as Netflix’s 13 Reasons Why, Amazon’s Jack Ryan, and Hulu’s Catch-22 and Looking for Alaska.

Pluto TV’s momentum continues

Pluto TV has enormous momentum in an increasingly crowded streaming universe, with domestic monthly active users surging nearly 70% to 20 million this calendar year.

Viacom’s focus and investment in Pluto is evident. In the fourth quarter, Pluto launched 43 new channels, 24 of which were Viacom-branded. The company also continues to grow Pluto TV distribution, both globally and on new platforms, which benefits users and business partners.

Domestic ad sales

Viacom’s evolution beyond linear is evident in the company’s return to full-year ad sales growth, an achievement driven by its suite of AMS products, including Pluto TV, and strong brands that resonate with digital audiences. Overall domestic ad sales grew 6% in the quarter, driven by an 83% uptick in AMS revenue.

Domestic affiliate revenue

Growth in the quarter and in the full year follows the renewal or extension of nearly all of Viacom’s traditional subscriber base, as well as inclusion on vMVPDs and mobile partnerships.

Live events

More than 4 million people attended Viacom-branded live events globally in fiscal 2019. By leveraging Viacom’s significant international operating footprint, live event franchises are expanding around the world. In 2019, VidCon held events in Australia, London, Mexico, Singapore, and the Middle East, with more planned in the coming year.

Studio production

In addition to the steady output of premium episodic content from Paramount Television, the Media Network studio production units at Nickelodeon, MTV, and Comedy Central have 17 domestic series ordered to or in production for third-parties.

For more detailed information, see the full press release.