Viacom Inc. (VIAB) has reported an 11.80 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $396 million, or $1 a share in the quarter, compared with $449 million, or $1.13 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $413 million, or $1.04 a share compared with $470 million or $1.18 a share, a year ago.
Revenue during the quarter grew 5.39 percent to $3,324 million from $3,154 million in the previous year period. Gross margin for the quarter contracted 422 basis points over the previous year period to 45.28 percent. Total expenses were 78.76 percent of quarterly revenues, up from 73.40 percent for the same period last year. That has resulted in a contraction of 536 basis points in operating margin to 21.24 percent.
Operating income for the quarter was $706 million, compared with $839 million in the previous year period.
However, the adjusted operating income for the quarter stood at $748 million compared to $839 million in the prior year period. At the same time, adjusted operating margin contracted 410 basis points in the quarter to 22.50 percent from 26.60 percent in the last year period.
Bob Bakish, president and chief executive officer, said, "Today we share a strategy that will enable Viacom to realize the full potential of its premier global portfolio of entertainment brands. Building on our leading domestic and growing international footprint, this strategy will expand the depth and reach of our flagship brands across multiple platforms and around the world, while also providing for more competitive differentiation and increased adaptability for our business overall. There is much work to be done, but we are confident we have the plan and people to take our brands to greater heights and build a bright future for our company."
Operating cash flow turns positive
Viacom Inc. has generated cash of $159 million from operating activities during the quarter as against cash outgo of $126 million in the last year period.
The company has spent $349 million cash to meet investing activities during the quarter as against cash outgo of $56 million in the last year period.
Cash flow from financing activities was $292 million for the quarter, up 2,820 percent or $282 million, when compared with the last year period.
Cash and cash equivalents stood at $443 million as on Dec. 31, 2016, up 35.47 percent or $116 million from $327 million on Dec. 31, 2015.
Working capital increases sharply
Viacom Inc. has recorded an increase in the working capital over the last year. It stood at $784 million as at Dec. 31, 2016, up 239.39 percent or $553 million from $231 million on Dec. 31, 2015. Current ratio was at 1.19 as on Dec. 31, 2016, up from 1.05 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 108 days for the last year period. Days sales outstanding went down to 82 days for the quarter compared with 85 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 46 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Viacom Inc. has recorded a decline in total debt over the last one year. It stood at $12,300 million as on Dec. 31, 2016, down 2.12 percent or $267 million from $12,567 million on Dec. 31, 2015. Total debt was 52.76 percent of total assets as on Dec. 31, 2016, compared with 56.20 percent on Dec. 31, 2015. Debt to equity ratio was at 2.73 as on Dec. 31, 2016, down from 3.35 as on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
