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Last Updated: Thursday, 9 November 2006, 18:17 GMT
Pay-out and films dip hits Viacom
Viacom chairman Sumner Redstone
Viacom chairman Sumner Redstone wants an entrepreneurial attitude
Media group Viacom has seen its earnings fall after a one-off payment to the firm's former chief executive, and declining income from films.

Viacom, the owner of Dreamworks and MTV, said net profits dropped 16% to $356.8m (187m) in the three months to 30 September, from a year earlier.

Former chief executive Tom Freston was paid $62m when he left after failing to improve the firm's fortunes.

Mr Freston was ousted as part of a wider management overhaul.

He has been replaced by Viacom board member Philipe Dauman.

Growing expenses

Viacom's chairman and controlling shareholder Sumner Redstone has been displeased at the firm's financial performance and its declining share price since it split from CBS in early 2006.

Mr Redstone has said he wants a more entrepreneurial attitude and more focused internet strategy.

Also as part of the shake up, chief financial officer Michael Dolan is due to leave the company at the end of this year. He will be replaced Thomas Dooley.

Expenses at the firm expanded significantly as a result of the management changes, hitting $113.8m in the three month period from $42.4m a year earlier.

At the same time, the group's film arm saw an operating loss of $6m compared with a year earlier when profits reached $108.2m.


SEE ALSO
Cruise and Paramount sever ties
23 Aug 06 |  Entertainment
Dreamworks boosts Viacom results
11 May 06 |  Business
Viacom agrees to split business
15 Jun 05 |  Business

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