As a battle is waged for control of Viacom, the company announced that its third-quarter profits fell 26.9%, attributable in part to increased investment in programming and lower ad revenues at the company’s cable networks. Variety notes that the results still beat Wall Street expectations.
Viacom, which owns cable channels including MTV, VH1, Nickelodeon and Comedy Central, is in the throes of a leadership struggle with Sumner Redstone and his family, who are the controlling shareholders, pitted against the management group headed by Philippe Dauman.
“Viacom said net income in its third fiscal quarter came to $432 million, or $1.09 a share, compared with $591 million, or $1.47 a share, in the year-earlier period,” Variety reports. “Revenue rose 2%, to more than $3.1 billion, compared with $3.06 billion in the year-earlier quarter. Adjusted for pretax gains, earnings came to $1.05 per share. The company’s filmed-entertainment unit showed better operating results, while its TV networks suffered.”