Income for the fourth quarter increased by 12 per cent at Viacom, while its revenue fell 17 per cent as a result of a decline in domestic advertising revenue and a strategy to release a diminished slate of movies through its Paramount Pictures studio.
The media company, whose cable channels include Nickelodeon, MTV and Comedy Central, said that its net income in the three-month period that ended September 30th was $643 million, compared with $576 million, in the same period a year earlier. Adjusted operating income was $1.05 billion, essentially flat compared to last year, largely because of cost-cutting. Overall revenue fell $690 million, to $3.36 billion.
Viacom has made efforts to infuse its struggling Nickelodeon network with new shows but advertising revenue remained soft. “The softness in Nickelodeon ratings in quarter hit us pretty hard,” said Philippe Dauman, Viacom’s chief executive.
But the biggest blow to Viacom’s revenue came from tough quarter-to-quarter comparisons at its Paramount movie studio, where revenue fell 39 per cent to $1.09 billion.
The company also reported its full fiscal year results which included a nine per cent increase in net income, to $2.35 billion, and a seven per cent drop in revenue, to $13.89 billion.