MTV owner Viacom’s quarterly revenue misses estimates

Viacom, the owner of television channel MTV and movie studio Paramount, reported a bigger-than-expected drop in quarterly revenue, hurt by lower income from advertising in the United States and a lack of hit movie releases in the period.

Viacom's board last week named chief executive Philippe Dauman as the company's executive chairman, replacing ailing 92-year-old majority owner Sumner Redstone and piling pressure on Mr Dauman to improve the company's performance.

The company has struggled with diminishing ratings for its cable networks in recent years as younger viewers migrate to online and mobile video.

Domestic advertising revenue fell 4 per cent as price increases were more than offset by a decline in traditional ratings at some of Viacom’s networks.

Revenue in the company’s filmed entertainment division, which includes Paramount, fell 15 per cent to $612 million (€545 million) , hurt by fewer big film releases. The year-earlier quarter included the strong performance of “Teenage Mutant Ninja Turtles”.

Net income attributable to Viacom fell to $449 million, or $1.13 per share, in the first quarter ended December 31st from $500 million, or $1.20 per share, a year earlier.

Total revenue declined 5.7 per cent to $3.15 billion.

Excluding items, Viacom earned $1.18 per share.

Analysts on average had expected a profit of $1.18 per share and revenue of $3.26 billion, according to Thomson Reuters.

Reuters