US media giant Viacom’s quarterly revenue results have failed to cheer the investors.
The group reported sales of $3.8 billion (£2.4 billion) for the quarter – although advertising revenues jumped by 10 percent during the period, a drop of 5 percent over last year’s same quarter sales. Analysts had projected revenues worth $4.1 billion for the quarter. Net profit was down by 10 percent and was reported at $610 million for the quarter.
Although the company’s film studio unit Paramount Pictures produced box office hits such as True Grit and Fighter, lower DVD sales dragged overall revenues down. The overall fall in revenue for the film and entertainment unit – which includes Paramount Pictures, fell by 16 percent, results indicate.
The December quarter of 2009 saw a strong growth in home entertainment sales on the back of hit DVD releases such as the transformers and Star Trek.
Viacom’s solid growth in advertising revenues paled in comparison to sterling growth of rivals News Corp and Times Warner.
The group’s music channel MTV posted strong results after the launch of a string of new programmes became hits on television.
Commending MTV’s performance, chief executive Phillippe Dauman said: “MTV is back on the moment. Last quarter MTV had three of the top five original cable series with Jersey Shore, Teen Mom and 16 And Pregnant”.