Viacom Inc. on Thursday posted a massive quarterly loss after $18 billion in charges for writing down the value of its radio and outdoor advertising businesses in the face of a soft radio market and heightened competition.
The New York-based media conglomerate said fourth quarter net loss was $18.44 billion, or $10.99 a share, compared with a net loss $385.4 million, or 22 cents a share, a year earlier.
Excluding extraordinary items, the company said it had a profit of 42 cents per share, topping an average Wall Street estimate of 39 cents a share, according Reuters Estimates.
Revenue rose 6 percent to $6.3 billion, falling short of analyst estimates of $6.42 billion.
The owners the Paramount movies studios and the Infinity Broadcasting radio network has attempted to revitalize its radio and films division in recent months to stave off weak growth. It hired veteran Hollywood talent manager Brad Grey to run its movie studio.
At Infinity, which lost controversial but popular radio host Howard Stern to satellite radio, Viacom has vowed to prune some of its stations to focus on the top radio markets.
Looking ahead, Viacom expects to post mid single-digit percentage growth in revenue, operating income. It expects high single-digit growth in earnings per share.
The $18 billion in charges stemmed from the company’s annual review of asset values, and the valuation reductions of its radio and outdoor advertising businesses reflect “emerging business trends and the competitive environment,” Chairman and Chief Executive Sumner Redstone said.