Viacom Reports Weak Results In Television And Film (NASDAQ:VIA)

Entertainment giant Viacom reported in its latest earnings report that its profit plunged 10 percent during the past quarter. For the three months that ended Dec. 31, the company’s first fiscal quarter, quarterly profit was reported at $449 million, or $1.13 a share. For the same quarter the previous year, profit was $500 million, or $1.20 a share. The company’s total revenue also fell. Total revenue was reported at nearly $3.2 billion for the quarter, 6 percent lower than in the same quarter last year.

Viacom’s results were dragged down by weak results across its television and film groups. Revenue in the company’s media networks segment, which includes its TV networks, fell 3 percent to $2.57 billion. In Viacom’s filmed entertainment segment, revenue dropped 15 percent to $612 million in the quarter. Worldwide theatrical revenue declined $75 million during the period. Negative foreign exchange effects also affected results.

Viacom is also struggling with declining advertising sales in the United States and internationally.
Domestic advertising sales declined 4 percent, a slight improvement from the previous quarter, when domestic advertising sales declined 9 percent. The company includes the MTV, Comedy Central and Nickelodeon cable television networks and the Paramount Pictures studio.

On a conference call regarding the earnings report, Philippe P. Dauman, Viacom’s chief executive, challenged an analyst’s depiction of the company’s “exceedingly poor performance” over the last several years. Mr. Dauman said during a conference call, “We will not be distracted or deterred as we build for the bright future ahead of us.” Shares in Viacom fell as much as 15 percent during morning trading after the earnings announcement. Viacom’s stock has fallen about 47 percent in the last year.

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