'Transformers' helps Viacom top 4Q estimates

Viacom Inc. posted fourth-quarter profit that beat analysts' estimates as the latest “Transformers” film and higher fees for networks like MTV countered lower advertising sales in the U.S.

Profit excluding some items rose to $1.71 a share, the owner of Comedy Central and Spike said today in a statement, topping the $1.68 average of estimates compiled by Bloomberg. Revenue grew 9.3 percent to $3.99 billion in the period ended Sept. 30, topping projections for $3.9 billion.

A pair of summer blockbusters buoyed Paramount Pictures, Viacom's film division. Director Michael Bay's fourth “Transformers” movie, “Age of Extinction,” has grossed $1.09 billion worldwide since opening June 27, according to Box Office Mojo, the most of any release this year. “Teenage Mutant Ninja Turtles” has grossed $464.2 million worldwide.

Viacom, controlled by billionaire Sumner Redstone, fell 0.4 percent to $69.25 yesterday in New York. The Class B shares have declined 21 percent this year.

Domestic advertising sales fell 5 percent at Viacom's cable networks, which include BET and Nickelodeon.

Investors sold off major media stocks last week amid signs of weakening advertising revenue. Discovery Communications Inc., another cable programmer, reported 1 percent growth in U.S. third quarter ad sales, its smallest gain on record, according to Bloomberg Intelligence.

Revenue at Viacom's media networks grew 8 percent, as domestic and worldwide affiliate fees paid by cable operators that carry its channels increased more than 20 percent. International ad sales grew 33 percent following the May purchase of British broadcaster Channel 5.

Viacom, which generated 74 percent of its annual revenue from television, is experimenting with various Internet- delivered services.

The company will provide its channels for Sony Corp.'s planned streaming-video service and has held talks with Dish Network Corp. as well.