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.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here