Viacom Sees Q2 Loss in Profit

[pwnophobia]

Viacom's Q2 reports state that they saw a "41 percent decline in ancillary revenues" specifically singling out Harmonix's Rock Band franchise.

Rock Band was also a factor in the Media Networks division's 12 percent skid in operating income, which fell to $671 million for the April-June quarter. According to the company, the slip could be attributed to "lower advertising revenues, losses associated with Rock Band due to the soft retail environment, and $16 million in severance charges."

All said, Viacom experienced significant weakness across a number of its divisions during the three-month period. Company-wide revenues stood at $3.3 billion for the quarter, a 14 percent decline from the same period a year ago. The media company also saw income slip 32 percent to $277 million during the period.

via Gamespot (http://www.gamespot.com/news/6214292.html)

[gzsfrk]

How does it get spun as bad news that a company like Viacom was "only" able to turn a $670+ million profit during a crap economy? The standard business rule of "if you're not growing, you're dying" does not hold true in a recession. Lots of smaller and/or weaker players will get shaken out during the downturn, and the stronger companies which remain will have less competition with which to contend (initially, at least) once the economy improves.

Loss in Profit != Loss

Sheesh...

[Samstag]

How does it get spun as bad news that a company like Viacom was "only" able to turn a $670+ million profit during a crap economy? The standard business rule of "if you're not growing, you're dying" does not hold true in a recession. Lots of smaller and/or weaker players will get shaken out during the downturn, and the stronger companies which remain will have less competition with which to contend (initially, at least) once the economy improves.

Loss in Profit != Loss

Sheesh...

Pfft! That's nothing. My esteemed employer sent out an official email a few months ago that addressed two issues. The first half was devoted to patting everyone on the back for 17% growth over last year. The second half announced plans to cut hundreds of jobs and introduce mandatory furlough for all employees.