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Viacom profit beats estimates on higher ad revenue

Published 14/11/2019, 12:48
© Reuters. The Viacom office is seen in Hollywood, Los Angeles
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(Reuters) - MTV-owner Viacom Inc (O:VIAB), which is in the process of reuniting with CBS Corp (N:CBS), beat analysts' estimates for quarterly profit on Thursday, helped by a rise in advertising revenue.

Shares of Viacom rose 3.5% in premarket trading after the company reported a 6% rise in domestic advertising revenue on a constant currency basis.

However, revenue from its filmed entertainment division, which includes Paramount Pictures, fell 14%.

CBS Corp (N:CBS) and Viacom - both controlled by Sumner and Shari Redstone's National Amusements Inc - plan to close the merger by early December.

In addition to distributing its own films and TV shows, Viacom is also producing content for streaming services including Apple Inc's (O:AAPL) Apple TV+, Walt Disney Co (N:DIS) controlled Hulu and AT&T's (N:T) HBO Max.

Earlier this week, Viacom announced a multi-year deal with Netflix Inc (O:NFLX) for which it will produce animated TV shows and features based on new and existing Nickelodeon characters.

Net earnings from continuing operations attributable to Viacom fell to $303 million (£236.8 million), or 75 cents per share, in the fourth quarter ended Sept. 30 from $386 million, or 96 cents per share, a year earlier.

Total revenue fell to $3.43 billion from $3.49 billion, but was above the average estimate of $3.41 billion, according to IBES data from Refinitiv.

© Reuters. The Viacom office is seen in Hollywood, Los Angeles

Excluding items, the company earned 79 cents per share, above the average analyst estimate of 75 cents per share.

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