Viacom reported its earnings for fiscal Q2 2014. The company agreed to acquire Channel 5 broadcasting in the UK for £450 million and will fund the deal with its existing cash. Channel 5 s revenues were around $600 million, generated from advertising. The network s margins are similar to Viacom s overall international business.
In terms of financial performance, media networks continue to see growth driven by higher ratings, especially at Nickelodeon. Viacom s movie arm Paramount benefited from the success of Noah.
Viacom s overall revenues increased by 1% to $3.17 billion while operating income grew 3% to $872 million. Adjusted diluted earnings per share grew 13% to $1.08. The media network continues to perform well as Viacom continues to add new programming and build on existing shows. Paramount will see meaningful growth in the coming quarters primarily due to its slate that includes Transformers: Age of Extinction and Teenage Mutant Ninja Turtles.
Media networks contribute close to 90% to Viacom s value. The media networks division s revenues increased by 6% to $2.38 billion led by affiliate fees and advertising revenue.
Viacom benefited from its decision to move MTV Brazil, Italy and Russia to its owned and operated models. This led to double-digit growth in international advertisement sales. Nickelodeon closed as the top basic cable network with kids in 2-11 demographic (up +4% versus a year ago) and total viewers. Nicktoons and TeenNick, scored their best ever performances with their core demos and posted double and triple-digit year over year gains.