Viacom Stresses New Hits, Web Views as U.S. Ad Sales Slump
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U.S. ad sales at Viacom declined 5% in the first quarter because of ratings declines, the media company controlled by billionaire Sumner Redstone said Thursday. Overall second-quarter earnings beat analysts’ estimates.
Total revenue shrank 3% to $3.08 billion in the period ended March 31, missing the $3.25 billion average of 27 analysts’ estimates compiled by Bloomberg. Profit excluding items rose to $1.16 a share, Viacom said Wednesday in a statement, topping the average estimate of $1.06. Global ad revenue grew 4%, aided by the acquisition last fall of the U.K.’s Channel 5.
Viacom, which owns networks such as Comedy Central and MTV, recorded $784 million in costs to write down shows such as “CSI” and “30 Rock” and pay for staff reductions. The writedown of programming was an acknowledgment that Viacom’s loss of domestic viewers extended beyond shortfalls in audience measurement, a subject of frequent griping by TV programmers who see viewers going mobile.
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