Why We Still Believe Viacom Could Be A Good Investment?

Viacom (NASDAQ: VIA) announced its Q2 earnings on April 28th, reporting a 3% decrease in its revenue as compared to the same period last year.  This can be primarily attributed to weaker ratings for X & Y, which led to lower advertising revenues.  However, we believe that this trend could change as most channels of the network showed significant improvement in ratings. The two outliers included MTV and Comedy Central, which are currently undergoing a strategic change. Strong growth in the International market, along with changes in the Paramount Pictures division, could drive Viacom’s business going forward. Here is why we continue to maintain bullish stance on Viacom’s stock.

[1] Viacom, Inc. (VIAB) CEO Philippe Dauman on Q2 2016 Results – Earnings Call Transcript, Seeking Alpha, April 28,2016

[2] Can India Be The Next Growth Market For Viacom?, Forbes , 05 April ,2016

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Viacom.