Viacom’s shares crashed by as much as 14 per cent at one point yesterday after the media conglomerate posted a disappointing set of earnings results.
A robust defence of the company’s performance by CEO Philippe Dauman did little to quell investor unease at a continuing slump in cable TV subscriptions, precipitating a six per cent decline in revenue.
Brushing aside such sentiment Dauman said Viacom was ‘adapting’ to ‘industry disruption’, adding: “Our outlook and the facts have been distorted and obscured by the naysayers, self-interested critics and publicity seekers. You will not be distracted or deterred as we build for the bright future ahead of us."
The flurry of bad news was compounded by ongoing concerns around the stability of Viacom’s management team after Dauman’s controversial appointment as executive chairman last week, following the dramatic departure of Summer Redstone.
Viacom, whose stations include Comedy Central and Nickeldoen, has seen its stock plunge by about 47 per cent over the past year.