Viacom's Earnings Plunge

In some ways, Viacom's fourth-quarter results, filed today (Thursday), resembled the box-office results last weekend for Hansel and Gretel: Witch Hunters, produced by the company's Paramount Studios. The movie opened in first place with nearly $20 million -- but analysts were quick to point out that the film cost $50 million to produce and that it most likely will not be profitable. Similarly, in today's SEC filing, Viacom posted net profits of $470, more than twice the $212 million that it reported for the same quarter a year earlier. But the earlier period included a write-down of $379 million paid out as part of the settlement of a dispute with its onetime videogame division, Harmonix Music Systems, producers of the popular Rock Band title. Adjusted for that payout, net earnings were actually down 22 percent. Indeed, there was little in Viacom's filing to cheer investors. Paramount took the biggest hit as revenue from theatrical and home-video releases dropped 37 percent, resulting in a loss for the quarter of $139 million. With nothing approaching the success of 2011's Mission: Impossible -- Ghost Protocol at the box office and fewer releases overall during the quarter, theatrical revenue plunged 43 percent. Likewise, ratings continued to slip at its cable networks, principally MTV and Nickelodeon, resulting in lower ad rates to advertisers. However those lower rates were partially offset by higher fees the company was able to extract from cable providers. Investors had anticipated the soft quarter and in fact the results narrowly beat analysts' forecasts. At midday trading on the NYSE, Viacom shares were virtually unchanged.



Contactmusic

Advertisement

Editors Recommendations

The Fifty Shades of Grey Movie Trailer Is Here: Was It Worth The Wait?

The moment Fifty Shades of Grey fans have been waiting for is finally...

The Fifty Shades of Grey Movie Trailer Is Here: Was It Worth The Wait?

Alec Baldwin (Mostly) Off The Hook On Disorderly Conduct Charges

Alec Baldwin was in court on Tuesday, facing charges of disorderly...

Alec Baldwin (Mostly) Off The Hook On Disorderly Conduct Charges

Pitbull feat. John Ryan - Fireball

Pitbull drops his eighth studio album 'Globalization' later this year and...

Pitbull - Fireball Video

The British Film Institute: 'There Are Too Many Films'

The BFI have condemned the amount of films released in British cinemas...

The British Film Institute: 'There Are Too Many Films'

What The Critics Are Saying About Scarlett Johansson's 'Lucy'

Early reviews of Scarlett Johansson’s new movie Lucy are piling up...

What The Critics Are Saying About Scarlett Johansson's 'Lucy'

Dwayne Johnson Battles His Way Through Non-Stop Absurdity In "Hercules"

It’s Hercules time! So we know that Dwayne Johnson made a lot...

Dwayne Johnson Battles His Way Through Non-Stop Absurdity In
Advertisement

Arty Ft. Angel Taylor - Up All Night [Lyric] Video

Russian musician Arty has collaborated with Angel Taylor on his latest single 'Up All Night', released on...

Arty - Up All Night (Lyric Video) Video

Those Colin Farrell for 'Iron Man 4' Rumors Refuse To Die

Rumors are abound that seminal Iron Man actor, Robert Downey Jr, will not be...

Those Colin Farrell for 'Iron Man 4' Rumors Refuse To Die

Marvel Announces Release Date for Unknown Movie - What Could It Be?

Last week Marvel studios took the unusual step of announcing five upcoming...

Marvel Announces Release Date for Unknown Movie - What Could It Be?


More recommendations

Advertisement

Comments

Newsletter

Subscribe to this news alert service to receive news and reviews on

Unsubscribe | Unsubscribe All