Viacom, the American media giant that is exploring a merger with CBS, reported a 71% drop in profit in the third quarter of 2016, due to poor performance by networks and falling box office earnings.
In the three months to September, the group reported earnings of $254 million, 64 cents per share, compared with $884 million, $2,21 per share, in the same period last year.
Excluding exceptional items, earnings were 69 cents a share, whereas the company expected it to be in the range of 65 to 70 cents.
Revenue fell 15% to $3,23 billion, below the $3,3 billion forecast. Revenue at its network media division fell 11% to $2,48 billion on the back of lower advertising while its film entertainment division saw sales fall 24% to $774 million.
The quarterly comes after the rumors of recent days regarding the possibility that National Amusements, the holding company of the tycoon Sumner Redstone that controls both Viacom and CBS, has asked the two companies to explore a possible merger.
The results don't appear to have surprised Wall Street investors. The stock, on an already complicated day, yields "only" 2,5%.
