Viacom Q2 Profits Slightly Below Estimates, Fewer Movies in Theaters

Media giant Viacom, owner of Paramount Pictures and television channels like MTV and Nickelodeon, reported earnings on Wednesday. Earnings of $1.42 a share were short of estimates by a penny, but were 10% higher than the same quarter in the prior year. Revenue of $3.4 billion were also short of estimates at $3.6 billion and last year's $3.7 billion for the quarter. Operating income managed to keep up with last year's numbers even though there was a 7% drop in revenue. This was a result of the filmed entertainment division which had a 26% drop in revenue but managed to increase it's net income by $38 million. Executive chairman Sumner Redstone was optimistic about Viacom's ability to evolve with the media industry. Whalen MacHale reports for TheStreet in New York.