Viacom, Inc. (VIAB), Time Warner Inc. (TWX) & DirecTV (DTV): Media Companies Are Swallowing Shares

Page 1 of 2

Companies can reward owners with their earnings power in two ways: pay cash dividends, or repurchase shares. Over time, companies that have consistently and aggressively paid cash dividends and bought back stock returned more to investors than the market average.

Some industries are better stewards of owner earnings than other industries. Let’s look at some of the biggest media companies, and how they’re enriching shareholders.

Media buyback binge

These companies have not only repurchased more than 5% of outstanding shares in the past year, but they have plans to buyback even more of their existing stock:

Viacom, Inc. (NASDAQ:VIAB)

When it comes to cable, Viacom, Inc. (NASDAQ:VIAB) simply gets it. The company owns a variety of cable networks, from which it generates substantial monthly subscription fees. The company’s premier asset is its Nickelodeon network, which takes the cake for the largest child audience and consistently posts impressive ratings. Most of the company’s revenue comes from cable channels targeting a younger audience. Viacom, Inc. (NASDAQ:VIAB) also owns MTV and Comedy Central.

While Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) try to take the TV online, Viacom, Inc. (NASDAQ:VIAB) has a powerful position as a content creator.

Philippe Dauman is one of the most shareholder-friendly CEOs out there. In 2011, he laid out his plan, one which would return as much as $20 billion to shareholders in the form of dividends and repurchases. Viacom, Inc. (NASDAQ:VIAB) is delivering on that promise. As of January, the company had $3.3 billion remaining in its authorization. Since 2009, total diluted share count fell by nearly one-sixth from 608 million to 514 million shares.

Time Warner Inc. (NYSE:TWX)

One of the biggest names in media, Time Warner Inc. (NYSE:TWX) has a strong portfolio in the cable business with HBO, CNN, TBS, and TNT leading the charge for affiliate revenue.

Time Warner Inc. (NYSE:TWX)’s assets generate impressive earnings. The company owns Warner Bros., which gives it access to a large library of movies that can create residual income streams in licensing the rights to streaming companies, specifically Amazon.com, Inc. (NASDAQ:AMZN), which recently signed a deal to stream Warner Bros content in Europe.

Time Warner Inc. (NYSE:TWX)’s edge is in its globally-respected programming. CNN International is available in nearly 200 countries around the world. Cable without Time Warner programming would be a tough sell – Time Warner Inc. (NYSE:TWX) has pricing power.

Share count has dwindled as the company returns cash to owners. Total shares outstanding fell from 1.145 billion in 2010 to 960 million shares in 2013, after reporting that it had purchased 16 million shares between January 1 and April 26, 2013. The buybacks aren’t over yet. A new repurchase authorization replacing previous programs allows for the company to buy back $3.132 billion in common stock.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!