Viacom shares spiked 6 percent on Thursday after the entertainment company reported better-than-expected second-quarter profits — and sustained ratings growth for its flagship brands.
The results prove Viacom’s long-awaited turnaround is “well underway,” Chief Executive Bob Bakish said.
“We remain focused on building this momentum with an even stronger September quarter,” Bakish added, in a nod to such highlights as the relaunch of Nickelodeon’s “Double Dare” in June and the two-week, $330 million gross for“Mission: Impossible — Fallout,” which has grossed $363 million after two weeks in theaters.
Viacom’s profits of $1.18 a share beat an analysts’ consensus of $1.07. Revenue of $3.24 billion fell just shy of the expected $3.26 billion.
Viacom shares closed at $30.34.
Separately, it was reported that the trust controlling Viacom-parent National Amusements Inc. includes restrictions that could make it difficult for the company — and for CBS, also controlled by NAI — to be bought.
The trust must retain 30 percent of the vote in Viacom and CBS after any potential deal, NAI confirmed. The Wall Street Journal first reported on the trust’s restrictions. That could be hard if a much larger entity is looking to acquire the companies.
A CBS lawyer characterized the “bombshell” terms as sales inhibitors.
An NAI lawyer countered that trustees could amend the terms of the trust after the death of 95-year-old Sumner Redstone, who controls 80 percent of NAI, should they find them too restrictive.