Viacom’s (NASDAQ:VIAB) second-quarter earnings slid 18% on lower revenue, as the media company saw weak performance in its filmed entertainment segment.
Profit fell to $478 million, or 96 cents a share, from $585 million, or $1.07 a share. Adjusted per-share earnings, which exclude one-time items, dipped slightly to 96 cents from 98 cents, although analysts only expected 91 cents.
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Revenue narrowed 5.9% to $3.14 billion, missing Wall Street’s forecast for $3.19 billion.
Operating margin fell to 27% from 28%, while total expenses fell 4.6%.
Filmed entertainment revenue dropped 20%, as worldwide theatrical revenue fell 15%. The year-ago period included contributions from Mission Impossible: Ghost Protocol.
Viacom did record improved advertising revenue that boosted performance at its media networks, which posted 2% revenue growth. Domestic affiliate revenue increased about 3%, and worldwide affiliate revenue improved 2%.
The company said its mix of titles and the timing of their release impacted worldwide home entertainment revenue, which tumbled 38%.
Last year, Viacom saw its ratings decline at networks like MTV and Nickelodeon, driving advertising revenue lower. On Wednesday, Viacom CEO Philippe Dauman said the recent improvement in advertising revenue came amid better ratings.
“Viacom’s media networks are continuing to develop innovative new original programming for all of our audiences, and building unique experiences for our established brands that move beyond the television screen,” Dauman said in a statement.
Dauman added that Paramount “successfully positioned G.I. Joe: Retaliation, Hansel and Gretel: Witch Hunters and Pain & Gain for global success,” while the year ahead “remains strong” with the upcoming releases of Star Trek Into Darkness and World War Z.
Class B shares of Viacom rose 3.8% to $66.45 Wednesday morning.