Entertainment conglomerate Viacom Inc. reported a 16% decline in net earnings for its third quarter Thursday on lower movie income and a compensation charge for dismissing its former chief executive, Tom Freston.
NEW YORK (AP) — Entertainment conglomerate Viacom Inc. reported a 16 percent decline in net earnings for its third quarter Thursday on lower movie income and a compensation charge for dismissing its former chief executive, Tom Freston.
The company also announced Michael Dolan would leave as chief financial officer, and that chief administrative officer Thomas Dooley would assume his duties. Dooley and Philippe Dauman, both board members of Viacom, took the company’s reins following Freston’s ouster in September. Dauman serves as CEO.
Viacom, which owns MTV, Paramount Pictures, DreamWorks, Nickelodeon and VH1, earned $356.8 million, or 50 cents per share, in the three months ending in September, versus $423.3 million, or 56 cents per share, a year ago.
Analysts polled by Thomson Financial had been expecting 48 cents per share.
Revenues rose 7 percent to $2.66 billion, just ahead of the $2.63 billion that analyst had been expecting. A 10 percent gain in cable networks revenues was offset by a smaller rise of 1 percent in entertainment.
Operating income fell 12 percent to $655.5 million as a 14 percent gain in cable networks was offset by a swing to a loss in its entertainment unit of $6.7 million from a profit of $108.2 million a year ago, when movie profits got a big boost from “War of the Worlds.”
Corporate expenses also swelled to $113.8 million from $42.4 million, largely because of a compensation charge of $62 million to Freston, who was ousted as CEO.