Viacom’s 4Q Profit, Revenue Falls Short

Reuters

Viacom, the owner of MTV, Comedy Central and Nickelodeon, reported weaker-than-expected quarterly revenue as a lack of hit movie releases hurt revenue from its films unit and ad sales fell in its U.S. cable TV business.

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The cable industry faces an increasing threat to revenue as consumers switch to streaming services such as Netflix and Hulu - a trend known as "cord-cutting".

On top of this, Viacom has been hurt by weak ratings.

Domestic advertising revenue declined 7 percent in the fourth quarter ended Sept. 30, while revenue from filmed entertainment dropped 24 percent.

The decline in revenue from films reflected a lack of big hits this year when compared with successes such as "Transformers: Age of Extinction" last year, the company said.

Revenue from the company's media networks, which includes its cable business, rose 5 percent, helped by a rise in international ad revenue.

Total revenue declined 5 percent to $3.79 billion

Net income from continuing operations attributable to Viacom rose to $884 million, or $2.21 per share, from $732 million, or $1.72 per share a year earlier.

Viacom reported adjusted earnings from continuing operations of $1.54 per share. Analysts on average had expected earnings of $1.55 per share and revenue of $3.88 billion, according to Thomson Reuters I/B/E/S.

Viacom's shares closed at $49.35 on Wednesday.

(Reporting by Abhirup Roy in Bengaluru; Editing by Ted Kerr)

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