Viacom Posts Flat Earnings

Viacom Inc. reported second-quarter earnings Thursday that were unchanged from a year ago. But excluding discontinued operations, such as the Blockbuster video rental chain that was split off late last year, earnings rose 6%.

Viacom, which owns MTV, CBS and Paramount Pictures, earned $753.8 million in the three months that ended in June, unchanged from a year earlier.

Per-share earnings rose, however, to 47 cents from 43 cents because of a smaller number of shares outstanding. The per-share earnings were a penny above the forecasts of analysts surveyed by Thomson Financial.

Revenue rose 10% to $5.88 billion, primarily on gains in the company’s cable networks unit and its entertainment division, which includes its movie studio.

Excluding the effects of discontinued operations in both periods, which include the Blockbuster unit that was split off in the fourth quarter last year, Viacom’s earnings from continuing operations rose 6% to $762.2 million.

The results were reported after the markets closed. Viacom’s B shares rose 29 cents to $33.87.

The results were led by a 14% gain in both revenue and earnings for Viacom’s cable networks unit. Television earnings fell 16% on a 1% decline in revenue; radio earnings edged up 2% on a 1% gain in revenue.

Entertainment swung to a loss of $12.6 million from earnings of $57.1 million a year ago despite a 24% jump in revenue.