Viacom CEO on Revenue Drop: Netflix Content Not the Problem
Just because kids can watch SpongeBob on Netflix (NASDAQ:NFLX) now doesn’t mean they are turning their backs on Nickelodeon.
According to the report, Viacom (NYSE:VIA) (NYSE:VIAB) CEO Philippe Dauman said Thursday during a conference call that the kids channel has seen no evidence that the availability of Nickelodeon programs on Netflix has had a “significant impact” on the company’s recent ratings slump and its ensuing decline in advertising revenue.
Dauman said the drop was due to “some ratings systemic issues” at Nielsen, citing set-top-box data that doesn’t reflect the Nielsen data. He also stated that Nickelodeon plans to go after the new Nielsen sample and promised improved ratings in the coming year, the report said.
Dauman added that in the coming quarters a smaller percentage of the company’s revenue will come from Nickolodeon than in the most recent quarter. He also stressed that over the years, Viacom has met with many TV ratings issues and has always come out on top.
Ad revenue at Viacom in the latest quarter was down 3 percent, but would have increased if it weren’t for the problems with Nickelodeon, Dauman said. Live-action series have been successful this quarter, Dauman noted, with iCarly bringing in more than 4 million viewers with each of its three episodes, and House of Anubis also growing. He also pointed out that new episodes of SpongeBob SquarePants will be part of this year’s launch of 500 episodes of original programming, a third more than last year.
Here’s how these stocks are reacting to the news:
Netflix, Inc. (NASDAQ:NFLX): NFLX shares recently traded at $126.42, up $2.42, or 1.95%. They have traded in a 52-week range of $74.25 to $304.79. Volume today was 3,420,173 shares versus a 3-month average volume of 8,626,390 shares. The company’s trailing P/E is 29.64, while trailing earnings are $4.26 per share.
Viacom Inc. Class A Common Stoc (NYSE:VIA): VIA shares recently traded at $53.46, up $1.1, or 2.1%. They have traded in a 52-week range of $44.10 to $60.90. Volume today was 14,169 shares versus a 3-month average volume of 25,132 shares. The company’s trailing P/E is 14.86, while trailing earnings are $3.59 per share.
Viacom, Inc. (NASDAQ:VIAB): VIAB shares recently traded at $48.21, up $1.52, or 3.26%. They have traded in a 52-week range of $35.13 to $52.67. Volume today was 2,437,883 shares versus a 3-month average volume of 4,572,610 shares. The company’s trailing P/E is 13.43, while trailing earnings are $3.59 per share.