Been working hard the last few weeks on the #HauntedHathaways movie.... It's crazyyyy [...]

Photo from Nickelodeon Italy's (Italia's) official Facebook profile page

Viacom's CEO Discusses F2Q2014 (Qtr End 3/31/14) Results - Earnings CallTranscript

May. 1, 2014 3:14 PM ET | [...]

Executives

Jim Bombassei - SVP, IR
Sumner Redstone - Chairman
Philippe Dauman - President & CEO
Tom Dooley - COO
Wade Davis - CFO

Analysts

Doug Mitchelson - Deutsche Bank
Alexia Quadrani - JPMorgan
Michael Nathanson - Moffett Nathanson
Richard Greenfield - BTIG
Brian Weiser - Pivotal Research
David Wise - International Strategy & Investment Group
Doug Creutz - Cowen & Company
Vasily Karasyov - Sterne Agee
Ben Swinburne - Morgan Stanley
Barton Crockett - FBR Capital Markets
Anthony Diclemente - Nomura

Viacom, Inc. (VIA) F2Q 2014 Earnings Conference Call May 1, 2014 8:30 AM ET

Operator

Good day, everyone, and welcome to the Viacom Second Quarter 2014 Earnings Release Teleconference. Today’s call is being recorded. At this time, I would like to turn the call over to the Senior Vice President of Investor Relations, Mr. Jim Bombassei. Please go ahead, sir.

Jim Bombassei - SVP, IR

Good morning, everyone, and thank you for taking the time to join us for our earnings call for our March quarter. Joining me for today’s discussion are Sumner Redstone, our Chairman; Philippe Dauman, our President and CEO; Tom Dooley, our Chief Operating Officer; and Wade Davis, our Chief Financial Officer.

Please note that in addition to our press release, we have slides and trending schedules containing supplemental information available on our website. I want to refer you to page number two in the web presentation and remind you that certain statements made on this call are forward-looking statements that involve risks and uncertainties. These risks and uncertainties are discussed in more detail in our filings with the SEC.

Today's remarks will focus on adjusted results. Reconciliations for non-GAAP financial information discussed on this call can be found in our earnings release or on our website.

Now, I’ll turn the call over to Sumner.

Sumner Redstone - Chairman

Thanks, Jim. Good morning and thank you for joining us. It was another successful quarter for Viacom. Our leading media networks and Paramount Pictures continue to attract large audiences all around the world. We have an outstanding management team who (inaudible) every single day.

Now I would like to turn the call over to the leader of that team, my good friend, the wisest man I have ever known, Philippe Dauman.

Philippe Dauman - President & CEO

Thank you very much, Sumner, and good morning everyone. Thanks for joining us to discuss the second quarter of our 2014 fiscal year.

Viacom had a strong quarter. The company achieved steady growth in quarterly revenues, earnings and operating income. Our Media Networks delivered strong top and bottom line growth even as we grew our investment in original programming. Ratings were up for the majority of our networks and we saw the successful run of Paramount Pictures The Wolf of Wall Street and the number one debut Noah, a bona fide global hit.

Let's take a quick look at our financial performance for the quarter. Tom and Wade will go into greater detail in a moment. Revenues increased to $3.17 billion reflecting both higher affiliate fees and advertising revenues in our media networks. Operating income rose 3% to $872 million. Adjusted net earnings from continuing operations increased to $482 million. Adjusted diluted earnings per share grew 13% to $1.08.

Viacom's balance sheet is strong. We remain committed to returning significant value to our shareholders, while investing in great content and the growth of our business worldwide.

In the March quarter, we repurchased $850 million in stock under our ongoing stock repurchase program. This quarter we also plan to repurchase $850 million in stock and expect our buyback for the September ending fiscal year to exceed $3.25 billion.

We are very pleased to announce this morning that we have agreed to acquire the United Kingdom's Channel 5 broadcasting for £450 million to be funded by our international cash on hand. After we close, we expect the transaction will be accretive to Viacom on an operating income basis in the first year. Channel 5's diverse programming slate will compliment Viacom's popular pay TV network. We believe that we will be able to invest in more programming for Channel 5 that will make the channel even more vibrant and utilize from that programming on our UK pay channel and even more on our existing and future networks around the world.

We look forward to welcoming Channel 5's accomplished executives and employees into the Viacom family for the very exciting future ahead.

As I mentioned, our media networks had a great quarter. Ratings were up on a year-over-year basis at many of our networks including Nickelodeon, Comedy Central, VH1, CMT, SPIKE, and TV Land.

Our media network segment grew total advertising by 3% and domestic advertising by 2% in the March quarter. In the current quarter, we expect domestic advertising to grow mid single digits.

On the distribution side, total affiliate revenue increased by 10% in the quarter and we concluded with the successful completion of our deal with the NCTC, the National Cable Television Cooperative. We also continue to drive value for distributors by launching new branded apps for our channel including the recent Comedy Central and BET NOW apps. Across Viacom, our apps were downloaded at a rate of more than a million times per month in the March quarter.

For the second straight quarter, Nickelodeon was the number one network for kids 2 to 11. Ratings grew 4% while its two biggest competitors saw significant declines. Nickelodeon's ratings has now increased year-over-year for 15 consecutive months. Nickelodeon can lay claim to 8 out of the top 10 shows for kids in the current broadcast season. The network's continued dominance in preschool is a big part of the success. Wallykazam debuted in the quarter as Nick's highest rate of preschool series and strengthened a formidable line up which includes PAW Patrol, Dora the Explorer and Bubble Guppies.

Nickelodeon also had the top five animated series in the March quarter including the newly launched Breadwinners and of course SpongeBob SquarePants which is a strongest ever approaching its 15th birthday. Live action is strong for Nick too. Sam & Cat gave the network a top rated show with kids 2 to 11, and the Thundermans and the Haunted Hathaways followed closely on its heels.

The content pipeline in Nickelodeon is rich. At its recent upfront presentation, the network introduced 10 new series along with a new Temple with Kids Choice Sports 2014 to be hosted and executive produced by Michael Strahan.

MTV, more than any network, has an imperative for reinvention. The network must anticipate changing tastes and trends among its young audience. A bold period of reinvention is at hand in MTV. Even as the network continues to launch unscripted hits like Catfish, it is doubling down on scripted fair with a trio of smart complex new series coming to air this year.

Each explores the universally relatable youth theme of self-discovery through a different lens. Faking It just debuted as MTV's highest rated new scripted premiere in two years. The show gives a humorous high school take on evolving social attitudes towards sexual orientation. Happyland is a mother daughter comedy that touches on the Latino experience in America. And Finding Carter is a mystery drama with an absolutely gripping plot that we believe can connect with a very broad audience. These shows will appear not only to our younger audience but to their oldest siblings and young parents as well. Of course, this reinvention also extends how fans interact and connect with the brand.

MTV is undertaking an exciting new initiative to transform the viewer experience. The network is building a new team to focus on real time interstitial coverage of cultural and social media events each day. I think the Quick Hit video pieces invented by MTV was produced almost right throughout the day to reflect trending topics extending the network's always on dialog with its audience.

MTV is hiring top editorial and design staff including Richard Charlie, the award winning former creative director of Bloomberg Businessweek, and investing in upgrades to its tech infrastructure to get this concept up and running. It's a fresh new approach and, from a sales perspective, it will shorten commercial pause for advertisers and allow us to give A positions for multiple clients. It will also enable marketers to buy in some trending cultural conversation at the scale that only television can offer.

Coming off six consecutive months of prime time ratings growth, VH1 is working to build consistent strength in Thursday Primetime and establish another solid night on Wednesdays to extend the success of its powerhouse Monday night lineup. The network is seeking loud fun shows with a high celebrity quotient. It has increased its stable production partners resulting in 10 new series coming to air through the beginning 2015.

Additionally, VH1 is building on its music movie franchise successfully launched with CrazySexyCool with Drumline 2 starring Nick Cannon. Like Being Mary Jane on BET we think Drumline could pave the way for an ongoing series if it connects with audiences.

CMT is building on major growth. Ratings were up 26% in the March quarter with more and more original programming including 20 hours of programming from its new CMT talks unit and a new CMT crossroads with Katy Perry and Kasey Musgraves.

Without a doubt Comedy Central is the place right now for young comedic talent. Thanks a successful investment the original series anchored by fresh voices at Key & Peele, Broad City and Inside Amy Schumer and Chris Hardwick of @midnight, a rethinking of the late night talk show that is growing its audience every month and attracting double the social media traffic of the tonight show. Much of this talent including Amy came up to what Comedy Central refers to as its farm team system, a roaster of young comics and nurtures with sponsor tours, records home video and its Sirius radio channel.

New originals had powered Comedy Central to its third consecutive quarter of year-over-year ratings growth. That success is fueling demand on all platforms from the new Comedy Central app, the newly re-launched sites for Daily Show and Colbert. Speaking of Colbert, Comedy Central looks forward to sending him off in style in his next eight months and we are excited about the opportunity to reinvent late night television again in the 11:30 slot beginning in 2015.

SPIKE also continues to see Stretch from its original, including its two biggest series Bar Rescue and Ink Master. To new extensions of the Bar Rescue franchise Hungry Investors and Frankenfoods are coming to SPIKE in the current quarter.

At BET Networks, the team is hard at works planning of second annual BET experience set for this June in Los Angeles. BET has created a number of new sponsorship opportunities around the festival which will again serve as a strong promotional platform for the BET Awards.

In the current broadcast season, BET has the top three sitcoms on cable among adults 18 to 49 with The Game, Real Husbands of Hollywood and Let's Stay Together.

And Centric, coming of is most watch quarter ever, recently announced plans to develop a lineup of new regional programming for African-American women in partnership with Queen Latifah.

Internationally, we are reaping benefits from our decision to move MTV Brazil, Italy and Russia to owned and operated models last year. All three have grown ratings, revenue and reach in the interim. Overall, our international ad sales grew double digits this past quarter. In the six months since its relaunch, MTV Brasil has risen from the 30th to the 16th (inaudible) network in its core demo in a very crowded marketplace.

Ratings for MTV Italy grew 31% year-over-year in the March quarter. The March quarter also saw MTV launch in the Philippines, as well as the launch of the Paramount Channel in Russia and Hungary.

And as I mentioned at the beginning of my remarks, we are truly excited by the potential Channel 5 will bring to us, not just in the UK but in our operations around the world.

Beyond our screens we are aggressively executing a low risk licensing strategy for stores and recreations to extent our brand pricings globally and continuing to expand our consumer products business to drive our bottom line.

Moving over to Filmed Entertainment, Paramount Pictures achieved success in the March quarter with the extended run of Martin Scorsese's The Wolf of Wall Street, and a number one debut of Darren Aronofsky's Noah. Noah continues to be a big hit and international theatergoers as well. The success of these films demonstrates not only their outstanding quality but also the continued ability of Paramount to connect broad audiences with challenging, creatively ambitious filmmaking.

Paramount also successfully launched PARANORMAL ACTIVITY: The Marked Ones in another very profitable film from it's in search label.

As we head into the summer temple season, Paramount's exciting release rate includes Transformers: Age of Extinction, Teenage Mutant Ninja Turtles and Hercules. There's great momentum at Paramount Television as well. The unit recently announced its new leadership team with production and development executives who worked on a wide rage of hits from Walking Dead to South Park. And just this week, Paramount Television announced its first major network production, a three-hour live broadcast of hit musical Grease for Fox. This gives you an idea of the kind ambitious and diverse projects the new unit intends to pursue. It also pulled back the curtain on a number of additional projects in development. We have projects inspired by Paramount hits, including the Truman Show and Narc, as well as the Terminator franchise.

We are also developing series based on the best selling mystery novel The Alienist with executive producers of Two Detective, and a limited one series based on a Scott Berg's Pulitzer-winning biography Lindbergh. We see a sellers market for these types of rich, character driven shows and we are excited to get them into production.

To close, Viacom is in great shape. We are positioned for an era of growth for our company. We continue to invest in programming and films that resonate with audiences worldwide and drive the businesses of our marketing and distribution partners. We remain focused on mining the many growth opportunities at hand for content creators, both at home and abroad and on new devices. As a result, we see sustainable, high-single to low-double digit growth in affiliate revenues, an improving environment for ad sales in U.S. and abroad, great potential for significant growth in our international business, consumer products revenue and new initiatives at Paramount and throughout our company. As all these initiatives bear fruit, we will continue to deliver results, create value and return substantial capital to our shareholders. Thank you.

And with that, I'll turn it over to Wade.

Wade Davis - CFO

Thanks, Philippe. Before I take you to our operating results, I want to note that our earnings release and web presentation summarizing the results for our March quarter are available on our website.

Now, let's take a look at our segment results. At our Media Networks segment revenues in the quarter were up 6% compared with the prior year, principally driven by increases in affiliate and advertising revenue. Domestic revenues were up 6%, while international revenues grew 10%.

Page 10 of our web deck provides a breakdown of our Media Networks revenue performance. In terms of advertising, domestic revenues were up 2% in the quarter and international revenues increased 14%. The growth in international advertising reflects the impact of new channels as well as continued improvement in the European marketplace.

In terms of affiliate revenues, domestic revenues increased 11% in the quarter while international revenues were up 7%. Excluding the impact from the timing of product available under certain distribution agreements, domestic affiliate revenues grew high single digits in the quarter. Growth in international revenues is due to increases in subscribers, new channel launches as well as higher rates.

Expenses increased 5% in the quarter. Within operating expenses, programming expense grew 5%. SG&A expense increased 6% reflecting advertising and promotion expense related to the marketing of original series and specials, as well as the impact of new channel in international markets.

Media Networks' adjusted operating income was up 9% and the adjusted operating income margin was 40%, an increase of approximately 90 basis points compared to the year. The margin increase was driven by top line growth of 6% partially offset by 5% growth in expenses.

Moving to Filmed Entertainment, revenues were down 12% in the quarter principally due to declines in home entertainment and theatrical revenues. Page 12 of the web presentation provides the break down for filmed entertainment revenues.

Theatrical revenues decreased 17% reflecting lower carryover revenues from prior quarter releases.

Home entertainment revenues declined 30% principally due to fewer leases in the quarter as well as lower carryover revenues.

Filmed Entertainment generated adjusted operating income of $11 million in the quarter as compared to $65 million last year. The decrease principally reflects the number and mix of current year releases.

In terms of taxes, the year-to-date adjusted effective tax rate was 33% reflecting a 150 basis point improvement as compared to the prior year. The reduction in the adjusted effective tax rate was primarily driven by the mix of domestic versus international profitability.

And with that, I would like to turn the call over to Tom.

Tom Dooley - COO

Thanks, Wade. Good morning, everyone. We'll talk about our cash flow and debt profile as well as return of capital to shareholders. I'll also cover the seasonal factors that impact the remainder of our 2014 fiscal year.

For the quarter, we generated $524 million in operating free cash flow compared to $700 million last year. Page 5 of the web deck presentation provides the components of free cash flow. The decline in operating free cash flow for the quarter is principally due to higher cash taxes and cash interest. The increase in cash taxes was primarily due to the timing of cash tax payments during the year.

As for our debt, it is principally fixed rate with an average cost at quarter end of 4.6%. During the March quarter, we took advantage of favorable market condition to maintain our leverage ratio at our target level by issuing a total of $1.5 billion of senior notes and debentures in a combination of 5, 10 and 30-year maturity. April 3 a portion of the new issuance proceeds was used to redeem the $600 million of outstanding 4.375% senior notes that were due September, 2014.

The new debt was issued at an average rate commensurate with our overall cost of debt and taken together with the redemption allowed us to extend our weighted average maturity.

In terms of short-term funding needs to the extent we have incremental borrowing we are funding this in the commercial paper marketplace at an annual rate of approximately 20 basis points. We had no variable rate borrowing at quarter end.

As for our leverage, we ended the quarter with $13.4 billion debt and capital leases outstanding. We had $2.6 billion of cash and cash equivalents. Our leverage ratio at the end of the quarter was 3.1 times. Taking into consideration the April 3 redemption of the $600 million of senior notes, our leverage ratio was 2.9 times because our cash balance decreased to $2 billion. At March 31, our $2.5 billion bank revolver was undrawn.

Our commitment to return capital to shareholders continued in the March quarter. During the quarter, we returned a total of $850 million of capital back to our shareholders and we ended the quarter was 432 million shares outstanding. For the June quarter, we are in a pace to purchase approximately $850 million of our stock, which means that for the first nine months of the year we will have returned a total of approximately $3 billion to our shareholders.

Now let's turn to some of the factors impacting the remainder of the fiscal year. In terms of affiliate revenue we continue to see long term annual growth in the high single digit and low double-digit range. However, quarterly affiliate revenue will fluctuate during the time of the transaction and the recognition of revenue related to certain distribution payments which are tied to product availability.

Accordingly, for the June quarter, we anticipate that affiliate revenues will be flat compared to the prior year. However, we expect that affiliate revenue will grow double-digit in the September quarter.

For the full year, we expect that the growth for media networks programming expense will be in the mid to high single digit. In terms of non-programming expense, we will continue to drive efficiencies throughout the organization in order to preserve and enhance our margin.

For 2014, we are now forecasting a book tax rate of 33% reflecting the mix of domestic versus international profitability.

At filmed entertainment, we're very excited about our upcoming summer tempo releases including Transformers: Age of Extinction, Hercules and Teenage Mutant Ninja Turtles. Looking ahead at Paramount production and development pipeline we are currently in production on the hybrid live action and CGI animated film Monster Trucks which is directed by Chris Wedge and is scheduled for release in May of 2014. We have started production on a Terminator Reboot which is a co-production in partnership with Skydance and we recently wrapped production on The Gambler which stars Mark Wahlberg in the lead role.

The studio is also currently in development on a number of sequels to existing franchisees including Mission Impossible, Star Trek, G.I. Joe, and World Wars 8.

In summary, we continue to invest in our brands and franchises developing new revenue streams and diversifying existing ones. At media networks, we continue to grow our global footprint, launching new channels and apps in the international marketplace.

Nickelodeon continues to grow its consumer products and licensing businesses having developed Teenage Mutant Ninja Turtles into the number one live action figure in the United States. And the launch of the new animated series Dora and Friends this summer and Paramount's release of the SpongeBob movie early next year will create new merchandise and licensing opportunities for these enduring franchises.

At filmed entertainment, we will release the first titles from our in-house animation division in 2015 and in conjunction with this the studio will be developing merchandizing opportunities tied to these films. Paramount is also getting back into the television production business seeking to capitalize on the increasing demand for original content from broadcast, cable, and pay TV networks. These initiatives will enhance both our top and bottom line growth and combined with our focus on managing cost, returning capital will drive additional value for our shareholders.

With that, I'm going to turn the call over to your question. Operator?

Question-and-Answer Session

Operator

Thank you. (Operator Instructions).

Our first question will come from Doug Mitchelson of Deutsche Bank.

Doug Mitchelson - Deutsche Bank

Philippe, a couple of questions. First, can you talk a little bit more about the conversations you're having with advertisers allowing the upfront process on what your expectations might be for price or volume this year? And on the cable show there was a lot of discussion around putting Netflix and the other Xbox providers as a channel in the cable box. And as you approach your conversations and you're modeling around, since you guys are the arm suppliers for the likes of Amazon the licensees that you were charging, did you consider the fact or are you worried about the fact that there could be an increased viewership competition as broadcasters are getting integrated in the cable box over time? Thanks.

Philippe Dauman - President & CEO

Thank you, Doug. As far as our heading into the upfront, we've had some very successful presentations to advertisers. I mentioned in my remarks all the new series and events that we have planned across our networks including the major ones like Nickelodeon and MTV where we had blockbuster presentations, but also some of our other networks that people generally don't think much of CMT. So we are very well positioned based on the strength of the programming across the board. We see an improving environment as we go forward. So we anticipate very successful market for us.

And many of the categories that are showing strength are the categories that are squarely in our wheelhouse like electronics, wireless, the kids market place, the movie the way they're skewed for the rest of the year and it's in next year, the kind of franchises that are out there. So we see a lot of opportunity as we look forward.

As far as the (inaudible) distributors we always face competition, we live in a world where we are suppliers of programming as you so aptly put it, we are to some degree the arms merchants, we are going to selective in what we provide, what we make available when, how are the content that we put on the (inaudible) operator serve to promote new episodes, new seasons, new shows, drive our consumer products business, there are a lot of aspects to how we distribute our programming in different windows.

And as for as competition goes, we live in a competitive world. It is our core strength to build the brands and great programming and we are just continuing to step up the pace on that and the results show.

We see a lot of opportunities, you focus on the set top box, we see opportunities beyond that in the mobile environment not just in the U.S. but around the world and we have geared our whole organization to play successfully in that world.

Operator

Our next question will come from Alexia Quadrani of JPMorgan.

Alexia Quadrani - JPMorgan

Hi, thank you, just a couple of questions. The first one is on the acceleration of domestic advertising growth that you are seeing in the fiscal third quarter. I guess what specifically is driving that? Is it the healthier marketplace? Is it the better movie played in that quarter? Is it Easter to a certain degree, and will that continue to the rest of the year?
Philippe Dauman - President & CEO
Thank you, Alexia. Well many of the factors that you mentioned. We did see some movie releases move out of the March quarter into the next couple of quarters. So certainly that will help us giving with a strong category that is. You're quite right that Easter is in this quarter and certainly in particular for the Nickelodeon business that makes a difference as we had in this quarter.

And as I mentioned in answer to Doug's question, some of our key categories are strengthening categories. When we look at the competitive environment that exist in mobile, wireless and electronics and quick service restaurants, the breakfast meal wars and all these competitive categories do provide strength for us, and of course the strength of our networks as well as the integrated marketing capabilities that we are providing to our advertisers.

We are the leaders and that is exactly what advertisers are looking for. And we are going to them with those offerings. We are getting more deeply embedded with social media in providing entire packages. So that's serving us well currently and will service well as we look into the next broadcast here in the up fronts.

[...]

Michael Nathanson - Moffett Nathanson

Okay, thanks, and then I have two for Philippe on Channel 5. One is I believe in the UK Viacom uses BSkyB as a sales agent whereas Channel 5 sells directly to the market. How do you think you guys will integrate Channel 5 sales team into your (inaudible)? This the first one.

Philippe Dauman - President & CEO

Michael, our current intention is to continue with business as usual in the ad sales team. They have operated very successfully. Of course, we just signed the agreement yesterday; we are moving forward. Our real focus of making this acquisition was the combined programming opportunities, distribution opportunities, the cross marketing opportunities as that we see here. For example, there is a very successful children's block on Channel 5 called Milkshake. It has some Nickelodeon programming on it now. We think by marrying milkshake with some of the Nickelodeon capabilities and programming there is up ended growth both sides of the house once we are able to close this transaction. So yeah, that is really been our focus. And again, it's a broadcasting asset, they can work well our pay channels but it has its own characteristics.

[...]

Richard Greenfield - BTIG

Hi. A couple of questions. First off, when you look at calendar Q1, you mentioned that the movie schedule was light or things got pushed out but are there anything kind of uniquely when you look at calendar Q1 that seems to make it one of your slower quarters advertising-wise versus other quarters throughout the year?

And then, just a big picture conceptual question. Sports programming seems to be something that all of your peers seems to be focusing more of their time and attention on, you have obviously done a little bit for SPIKE. But just wondering, your appetite for increasing your overall exposure to sports programming to ensure or accelerate your subscriber fees? Thanks.

Philippe Dauman - President & CEO

Thank you, Rich. Yeah, there was some movies that did not move out of calendar Q1, our fiscal Q2. But also, if you look back on last year, even a year before, you do see in the general marketplace this time of the year end of first calendar quarter, beginning of second calendar quarter, you see a pattern of what the demand is in the marketplace for variety of reasons, many bill it as the calendar second quarter continues and we are seeing that, particularly in categories that we have particular relative strength in.

As far as sports related programming, one, yes, as you pointed out, we have some participation in that. But as you look at some of the programming that we have for example, the new event that we are going to have in -- on Nickelodeon, hosted by Michael Strahan the Kids Choice Sports 2014 that takes advantage of the vibrancy of sports. If you look at MTV 2, we have a programming tied in with Major League Baseball, that -- they are very interested in working with us.

So we are looking at opportunities where we can. There may be some opportunities internationally as well and that was one of the rationales behind our getting involved with Bellator here in the U.S. We see that as potential programming as we rollout of the SPIKE brand; if we roll that out internationally that would be a natural there.

So we look at those opportunities. But yeah, we are very focused on I think a broad range of programming that has that live events, that eventized appeal like sports does. So that could be the light of it, but it also mean fresh series that add and make social conversation. So it's really not so much of sports, it's really having fresh current vibrant content of all times, including sports related content that counts.

Richard Greenfield - BTIG

Thank you.

Philippe Dauman - President & CEO

You're welcome.

[...]

Operator

Our next question comes from Vasily Karasyov of Sterne Agee.

Vasily Karasyov - Sterne Agee

Hi. Tom, I've a two part question for you about consumer product licensing. In your prepared remarks, you have highlighted all these opportunities coming up in the next several quarters. So looking at your end year revenue in domestic looks best for the couple of years, but it looks pretty flattish though. Are those new opportunities are the result of something new focus on this revenue stream for you? And then after that can you tell us what competition is like in the market because I'm sure you know every peer of yours is hoping for growth in consumer product life and category Frozen and the Marvel characters and Star Wars and Disney Dreamer Termination, we got Dragon 2 and so on and so on. How do you see the market? Is there competition benign enough for you to count on the substantial success there? Thank you.

Tom Dooley - COO

It's a good question, Vasily, thank you for it. Yes, we do see this category both from a revenue and a bottom line contribution increasing both throughout the rest of this year and certainly into the future years. And it is competitive but that's why its important to have something a franchise like Teenage Mutant Ninja Turtles where you're number one, and I think that will continue to be our focus. And as I noted in my remark, we continue to focus on franchises that has very much a (inaudible) appeal that will put us as a very competitive player in that marketplace. Until those shows, movies get made and get up in on the air it will be hard to predict the outcomes but we're in this business for the long run. We see the tremendous success others have had in it. We put in place the organization to take advantage of it and we have great content and IT to drive that business into the future.

Vasily Karasyov - Sterne Agee

But you don't feel like that ship has sailed and you're late to the game and the market is taken over by competitors and there is just no room for your properties there?

Tom Dooley - COO

I mean, it's not a question of room, it's a question of which properties resonate with kids. And our goal, given our franchises and certainly having a very strong franchise in terms of being able to platform that product with children in channels like Nickelodeon that is a big opportunity for us.

And the rest of ancillary revenue though some of the growth that consumer products will drive will be offset by some of the declines in home entertainment ability to sell products in that marketplace as DVD sales related to the media networks side of the house continue to decline.

Philippe Dauman - President & CEO

Vasily, I would add on that is as you see some stabilization strengthening in European consumer market and growth of retail in emerging market that creates a bigger pie in consumer products as we look forward in the years ahead.

Nicktoons Rebrand Bumpers from Mike Cheslik on Vimeo.

I wrote and edited these bumpers for Nicktoons' 2014 rebrand. Co-produced with JJ Pagano.

We've got a brand new game show premiering on June 2 and @thecarlospena will be hosting it! http://at.nick.com/1ngRudt#webheads.

Nickelodeon Renews 'Breadwinners' For Second Season

EXCLUSIVE: There's going to be more Breadwinners flyin' around on Nickelodeon. The cable network said today it will be bringing the animated series about a duck duo and their rocket van delivery service back for a second season with a 20-episode order. "The popularity and success of Breadwinners is a testament to our commitment to creator-driven animation," said Nickelodeon's Russell Hicks, President, Content Development and Production. "We're thrilled to bring our audience another season of this great show as part of our continued pledge to building our pipeline of original animation." Nickelodeon picked up the show from animator from Gary “Doodles” DiRaffaele and former MAD and Teen Titans Go! writer Steve Borst last February. Discovered in Nickelodeon's 2012 Animated Shorts Program, the first season of 20-episodes starting airing in February of this year on Saturdays.

VIMN ups Americas production exec

Viacom International Media Networks (VIMN) has promoted one of its execs to oversee production for the company’s operations in the Americas.

Juan Acosta becomes executive VP, CFO and executive-in-charge of production with a remit that includes oversight of original production strategy, including English-language adaptions of Latin America formats for sister networks around the world.

He will also supervise finance and franchise opportunities for the division, which owns and operates entertainment brands in Latin America including MTV, Nickelodeon, Comedy Central and VH1, as well as US Hispanic network Tr3s.

Acosta will continue to be based in Miami and report to Sofia Ioannou, MD of VIMN The Americas and Scot McBride, exec VP and chief operating officer at the same division.

Acosta was most recently senior VP, CFO and executive-in-charge of production, where he assisted in putting together production deals and negotiating distribution rights. He joined VIMN in 2007 and before that worked for NBCUniversal’s Telemundo Network Group, MGM Studios and the Walt Disney Company in California.

Richard Middleton
07-05-2014
©C21Media

TAGS: Appointments
GENRES: Entertainment
PEOPLE: Juan Acosta
COMPANIES: Viacom International Media Networks
COUNTRIES: Latin America, US

when it start - Sunday 4th May 2014

[...]

@drucker_jason: all i can say is ............summertime :) - Thursday 8th May 2014.

SpongeBob runners raise over £30,000

A WORLE mum and her friends have raised more than £30,000 after dressing in SpongeBob Squarepants costumes and 
running the London Marathon in memory of her daughter.

Sue Collard completed the run along with Kev Knight, Sarah Toms, Carole Craddock, Dave 
Elliott, Stuart Jervis and Gary Moore.

Sue’s daughter Mary, pictured right, who was a member of Weston’s Swimming Club and the town’s Act One drama group, lost her brave battle with bone cancer in 2012 at the age of 11.

Her favourite cartoon was the Nickelodeon show, and so Sue decided this would be the perfect costume for the big run and a great way to raise money for the Bone Cancer Research Trust.

Since the friends were allocated their individual places they worked hard on organising various charity events such as golf days, gigs, cake sales and quiz evenings.

The team have raised more than £30,000, with more still being collected, and Sue 
said: “I would like to thank everyone who has supported us in continuing to remember Mary and to raise awareness of bone cancer and to find a cure.”

If you would like to make a donation visit www.justgiving.com/Kevin-Knight4.

SAM ET CAT - EPISODE SPÉCIAL

Retrouve un épisode spécial #LeSautDeLaMort avec Sam Et Cat le dimanche 11 mai à 17H10 !