Viacom sales soar but profit falls 6%
Viacom Inc. said it withstood a weak U.S. advertising market in the second quarter with a strong film slate led by “Iron Man” and strong sales of the Rock Band video game.
Revenue climbed 21% to $3.86 billion, topping analyst estimates, as New York-based Viacom’s movie business surged 35% to $1.77 billion.
Three films -- Paramount Pictures’ “Iron Man” and “Indiana Jones and the Kingdom of the Crystal Skull,” as well as “Kung Fu Panda,” which Paramount distributed for DreamWorks Animation SKG Inc. -- have grossed $837 million at the domestic box office.
But ad revenue at Viacom’s television networks grew just 2% to $1.17 million worldwide and 1% in the United States.
Profit fell 6% to $407 million, from $434 million last year, when Viacom realized a gain of $94 million from selling MTV Russia. Adjusted earnings from continuing operations rose a penny to 64 cents.
Shares, which closed down 0.6% before the results were announced, fell $1.13, or 3.8%, to $28.70 in after-hours trading.