On Tuesday, Viacom, Inc. (NASDAQ: VIA) announced the first quarter financial results of fiscal 2016 ended December 31, 2015. Shares of the company slumped 12.14% to $39.28 after the earnings announcement.
Viacom's financial results come few days later after the company announced that Sumner Redstone was turnover as executive chairman. He was replaced in the role by CEO Philippe Dauman. Sumner Redstone's daughter Shari has stated that she was against Dauman getting the CEO position because of his deep involvement in Redstone family affairs.
According to the first quarter financial results, net income of Viacom dropped 10.2% to $449 million and earnings per share down 5.8% to $1.13, compared with the last year net income of $500 million and $1.20 earnings per share. Total revenue decreased from $3.34 billion to $3.15 billion which missed the Wall Street expectation of $3.25 billion.
During last five years, Viacom’s earnings, cash flows, and sales are all fell down, and the company’s business is weak in both the TV broadcasting and the movie division segments. Currently, Philippe Dauman is trying to do something to solve this difficult problem. Selling Viacom's content on digital platforms is the necessary movement in the future.
After the earnings report, Viacom and Snapchat also announced an unprecedented global partnership that capitalizes on and extends the unique expertise of both companies to creatively and authentically speak to millennial and post-millennial audiences.
“Viacom and Snapchat naturally complement each other in significant ways that make us ideal partners in both content and business development,” said Wade Davis, Chief Financial Officer, Viacom. “Snapchat captures young audiences on an intimate and immersive mobile video platform while Viacom is the leader in premium long- and short-form storytelling for these same audiences. Add in Viacom’s custom marketing solutions and commitment to evolve our global mobile strategy and you’ve got a partnership that is great for both companies, for advertisers, and is a real evolution of the marketplace.”