“Mission: Impossible – Fallout” has propelled Viacom Inc, the owner and operator of channels like MTV, Comedy Central and Nickelodeon, to profits that beat the market estimates and e3xpectations of eh Wall Street in terms of its profit and revenue, announced the company on Friday.
There was an uptick of 4 per cent in the shares of the company following the announcement of the good results as its value reached $33.50 in trading before the bell on Friday’s close.
The company has been in doldrums for more than two years now over debates about whether the company should remain as a standalone company or become a part of the larger player through the merger with CBS Corp and this result is actually welcome for the company and its investors.
The company also suffered due to a controversy over sexual harassment allegations against the former CBS Chief Executive Leslie Moonves, who was instrumental in opposing the merger proposal, and had to step down from his position in September following the allegation turmoil.
The suitor for CBS, Shari Redstone agreed not to propose for another merger with the company either herself or through others affiliated with National Amusements for a period of two years in a settlement with CBS following which the later withdrew its lawsuit. However, if news reports are to be believed, the fire of merger and acquisition has not died n\down and many insiders expect that merger discussions would again be rekindled before the end of the two year period.
Paramount and the company’s cable TV business has been the focus of the Chief Executive Bob Bakish ever since he had taken over the responsibility in 2016. The Paramount and the cable TV business had been losing subscribers – just like a almost all of its rivals, as most of the subscribers had been shifting to online entertainment modes such as Netflix Inc and Amazon.com Inc’s Prime video.
According to data from Refinitiv, Viacom beat Wall Street estimates of $1.17 billion for its worldwide affiliate revenue which came in at $1.19 billion, beating market expectations. There was a 5 per cent increase in the total revenue generated by the company for the fiscal fourth quarter which ended on Sept. 30 and reached $3.49 billion compared to $3.32 billion a year ago.
The company said that its latest installment of the Tom Cruise-helmed “Mission Impossible” action series helped to propel the revenues of $800 million in worldwide sales for Paramount in the fiscal fourth quarter which had returned to profitability in the second quarter.
However there was a drop in the net income attributable to Viacom fell at $394 million, or 98 cents per share, compared to $674 million, or $1.67 per share.
The company said that earnings reached 99 cents per share on an adjusted basis.
(Adapted form Nasdaq.com)