Viacom halves its dividend as more young TV viewers go online

Viacom slashed its quarterly dividend by 50 per cent on Wednesday and said interim chief executive Tom Dooley would leave the company.

Viacom also said it had ended the process of seeking a minority investor for Paramount Pictures as it considers all options available to the company.

The media company, which owns cable networks Nickelodeon, MTV and Comedy Central, halved its dividend to 20 US cents per share as it looks to pay down debt. The move marks the first time the New York-based company has cut its payout since it split from CBS Corp in 2006.

Viacom has been struggling to improve ratings as more younger viewers go online to watch their favorite shows.

Last month, controlling shareholder Sumner Redstone, and his daughter Shari Redstone, won the battle for control of Viacom, resulting in the departure of Viacom's former CEO Philippe Dauman, who had long resisted cutting the dividend.

Viacom said it expects adjusted profit for the fourth quarter to be between 65 and 70 cents per share. Analysts on average had expected 89 cents per share. – Reuters