Revenue during the quarter grew 8.50 percent to $3,256 million from $3,001 million in the previous year period. Gross margin for the quarter contracted 459 basis points over the previous year period to 40.29 percent. Total expenses were 89.80 percent of quarterly revenues, up from 80.47 percent for the same period last year. That has resulted in a contraction of 933 basis points in operating margin to 10.20 percent.

Operating income for the quarter was $332 million, compared with $586 million in the previous year period.

However, the adjusted operating income for the quarter stood at $612 million compared to $586 million in the prior year period. At the same time, adjusted operating margin contracted 73 basis points in the quarter to 18.80 percent from 19.53 percent in the last year period.

Bob Bakish, President and Chief Executive Officer, said, "In the second quarter, Viacom delivered continued top-line improvement, with growth in affiliate revenues, international media networks and across every business segment of Paramount Pictures. Additionally, we executed quickly on our strategic plan, making significant organizational changes to better focus and align Viacom’s brand portfolio and ensure strong leadership, including the appointment of Jim Gianopulos to chart a new course at Paramount. We are working diligently to cement Viacom as a partner of choice in the industry, presenting new and reinvigorated brand strategies for our advertisers, producing creative and flexible new opportunities with our distributors and recommitting ourselves to be the home for the world’s best talent."

The company has spent $281 million cash to meet investing activities during the first six months as against cash outgo of $98 million in the last year period.

Cash flow from financing activities was $191 million for the first six months as against cash outgo of $208 million in the last year period.

Cash and cash equivalents stood at $671 million as on Mar. 31, 2017, up 39.79 percent or $191 million from $480 million on Mar. 31, 2016.

Working capital increases sharply
Viacom Inc. has recorded an increase in the working capital over the last year. It stood at $1,568 million as at Mar. 31, 2017, up 493.94 percent or $1,304 million from $264 million on Mar. 31, 2016. Current ratio was at 1.44 as on Mar. 31, 2017, up from 1.06 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 115 days for the last year period. Days sales outstanding went down to 84 days for the quarter compared with 88 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 17 for the same period last year.