Viacom (VIA) had a bad quarter, which was to be expected. Media companies are suffering from drops in advertising revenue and the number of consumers who subscribe to their content services and go to their movies.
Viacom’s film entertainment business scuttled earnings. Revenue for the entire company fell 14% to $3.3 billion. Operating income was off 26% to $586 million.
Viacom’s film entertainment division actually lost money. Revenue in the business dropped 22% to $1.38 billion. The company’s other large unit, Media Networks, did less poorly with revenue down 8% to just under $2 billion. The operating profit numbers were even worse for the film business. It made $86 million in the quarter a year ago. In the most recent period it lost $25 million. Media Networks operating profit fell 12% to $671 million.
The movie business is cyclical, driven to a large extent by blockbuster pictures. If Viacom does not produce on soon, the year is not likely to get better for the big media company.
Douglas A. McIntyre
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
