NEW YORK, Oct 28 (AFP) - Media-entertainment group Viacom said Thursday it posted a net loss of 487.6 million dollars in the third quarter as a result of its spinoff of its struggling Blockbuster video unit.
The company, which owns the CBS and MTV television networks and Paramount Studios, managed a 12 percent rise in profits not counting the Blockbuster separation costs, which amounted to 1.2 billion dollars.
Excluding one-time events, Viacom earned 723 million dollars, up from 699.6 million in the same period a year ago,
The profit without those charges amounted to 42 cents a share, a penny ahead of Wall Street estimates.
Revenues edged up four percent to 5.5 billion dollars for the July-September quarter.
Viacom also announced an eight billion dollar authorization to buy back stock, as well as an increase of 17 percent in its quarterly dividend.
During a conference call with analysts, Viacom chairman Sumner Redstone said the buyback news was "historic."
Viacom will be "very aggressive" as it pursues its buyback project, Redstone said.
In its quarterly report, the media conglomerate reported revenue improvement in both in its cable and broadcast TV units.
While the radio division has held back Viacom in recent quarters, the company put a brave face on the industry's woes.
Leslie Moonves, one of Viacom's co-operating officers, said: "We still believe in radio."
Viacom is trying hard to enliven its Spike TV brand, which is targeted at young adults.
10/28/2004 19:13 GMT - AFP