Viacom saw profit in the second quarter plummet 111% as it confirmed a restructuring charge of $784 million during the period and noted that revenue from U.S. advertising fell for the second time in two earnings disclosures.
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The New York owner of MTV, VH1, Comedy Central and the Paramount movie studio reported a net loss of $53 million, or 13 cents a share, compared with a profit of $502 million, or $1.13 a share, in the year-earlier period. Excluding the restructuring charge and other items, Viacom reported $1.16 a share, compared with $1.08 a share in the year-earlier period.
The company said revenue fell 3% in the period, to $3.078 billion from $3.174 billion, as a 21% decrease in revenue from filmed entertainment offset a 3% gain in revenue at the company's cable networks.
In the U.S., domestic advertising revenues fell 5%, owing to lower ratings, the company said. . Worldwide advertising revenues rose 4%, due to an 80% increase in international advertising revenues resulting from growing overseas operations. Viacom acquired Channel 5 in London in September of last year. Viacom said U.S. affiliate revenues rose 5% and worldwide affiliate revenues grew 3%, largely because of rate increases.