Viacom profit dips 69%

Viacom, owner of MTV, Nickelodeon and the Paramount Pictures movie studio, reported fourth quarter profit fell 69% on costs related to job cuts and the write-down of some of its assets.

Net income dropped to $173m in the three months to 31 December, down from $560m (£384m) in the same period last year as it absorbed a $454m (£311m) charge related to redundancy and programming costs.

The media giant, which also owns the “Rock Band” video game, cut about 880 jobs in December, including about 75 at MTV UK, as it tackles falling DVD sales and declining advertising revenues.

Worldwide advertising revenues declined 3% to $1.35bn (£926m) while revenue in its media networks division increased 1% to $2.48bn (£1.7bn) boosted by worldwide affiliate earnings.

Filmed Entertainment revenues declined 2% in the fourth quarter, hit by a 6% dip in DVD sales to $1.02bn (£700m).

Theatrical revenues grew 28% to $350m (£240m) driven by the box office success of animated film Madagascar 2: Escape to Africa.

Viacom’s UK sales are run by Viacom Brand Solutions led by Nick Bampton.

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