Viacom Inc. (NASDAQ: VIA) reported quarterly revenue on Thursday that fell below Wall Street estimates as domestic advertising sales fell and the Media Company collected lower fees from cable TV operators and online distributors.
The Company said worldwide affiliate revenue dropped 3% to USD 1.15 Billion, missing estimates of USD 1.16 Billion, according to research from Factset. It also reported a decline of 3% in domestic advertising revenue to USD 922 Million.
Net income attributable to Viacom, the owner of MTV, Comedy Central, and Paramount Pictures, fell to USD 522 Million, or USD 1.29 per share, in the third quarter compared to the USD 638 Million, or USD 1.70 per share, a year earlier. Total revenue fell to USD 3.24 Billion from USD 3.36 Billion.
The surprise success of horror film “A Quiet Place”, however, helped Viacom top profit estimates and sent shares on their biggest rally in six months.
“A Quiet Place’’ cost just USD 17 Million to produce and grossed USD 332 Million in worldwide ticket sales. Viacom’s Paramount Pictures, which lost money in 2017, is in the midst of a strong summer at the box office, thanks to “Mission: Impossible -- Fallout.’’ The studio has branched out into TV production in recent years, producing shows for Netflix, Amazon and Turner Broadcasting.
Led by Paramount, Viacom reported third-quarter profit from continuing operations of USD 1.18 a share, beating analysts’ estimates of USD 1.07.
That helped send the shares up as much as 8.9% to USD 31.16 on Thursday, marking the biggest intraday gain since February. The stock had been down 7.1% this year through Wednesday’s close.