Viacom Inc. (VIAB:US), the owner of Comedy Central and the Paramount Pictures film studio, posted third-quarter profit that fell short of analysts’ estimates after film revenue dropped.
Earnings of $1.42 a share, excluding some items, in the period ended June 30 were lower than the $1.43 average of 30 analysts’ predictions (VIAB:US) compiled by Bloomberg. Revenue dropped 7.4 percent to $3.42 billion. Analysts anticipated $3.55 billion, on average.
The company, controlled by Chairman Sumner Redstone, faced tough comparisons in its cable-TV networks from a year ago, when domestic advertising sales were accelerating and fees from pay-TV systems rose more than 25 percent in the U.S. and internationally.
“Transformers: Age of Extinction,” Paramount Pictures’ summer blockbuster, opened at the end of the quarter and recently surpassed $1 billion at the worldwide box office.
Viacom fell 0.8 percent to $81.77 yesterday in New York. The stock has retreated (VIAB:US) 6.4 percent this year, compared with a 3.9 percent gain for the Standard & Poor’s 500 Index.
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