Nickelodeon, MTV and Paramount Studios parent Viacom (NASDAQ:VIAB) on Thursday said it topped profit expectations in the fourth quarter despite a worse-than-projected drop in fourth-quarter sales.
The New York-based broadcasting company posted net income of $643 million, or $1.24 a share, compared with a year-earlier profit of $576 million, or a dollar a share, topping average analyst estimates of $1.17 in a Thomson Reuters poll.
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“Viacom is executing on its goals of continued investment in great content, ongoing operational excellence and ever-increasing returns to shareholders,” Viacom CEO Philippe Dauman said in a statement, adding that the company's "balance sheet remains strong, providing the flexibility to invest in our business.”
Shares of Viacom were up about 4% to $49.91 in recent trade.
Revenue for the three months ended Sept. 30 fell 17% $3.36 billion from $4.05 billion a year ago, narrowly missing the Street’s view of $3.41 billion.
Viacom attributed the decline in sales to a 39% decrease to $1.09 billion in filmed entertainment revenues, partially offset by stronger domestic advertising revenues, rate increases and higher digital sales.