Viacom Inc. (VIAB) has reported a 71.27 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $254 million, or $0.64 a share in the quarter, compared with $884 million, or $2.21 a share for the same period last year. On an adjusted basis, earnings per share from continuing operations were at $0.69 for the quarter compared with $1.54 in the same period last year.

Revenue during the quarter dropped 14.84 percent to $3,226 million from $3,788 million in the previous year period. Gross margin for the quarter contracted 658 basis points over the previous year period to 42.28 percent. Total expenses were 89.71 percent of quarterly revenues, up from 72.15 percent for the same period last year. That has resulted in a contraction of 1756 basis points in operating margin to 10.29 percent.

Operating income for the quarter was $332 million, compared with $1,055 million in the previous year period.

However, the adjusted operating income for the quarter stood at $538 million compared to $1,055 million in the prior year period. At the same time, adjusted operating margin contracted 1117 basis points in the quarter to 16.68 percent from 27.85 percent in the last year period.

Tom Dooley, interim president and chief executive officer, said, "Viacom ended the 2016 fiscal year well into our transition, as the company's industry-leading data program increased in size and sophistication, ratings stabilized at several of our key networks and Paramount has begun to rebuild a full, dynamic slate of films. In addition, our international media networks business is stronger than ever, and we will continue to broaden our footprint and apply our successful strategies to additional territories in attractive markets. With new leadership across the company, continued investments in new content, technologies and targeted acquisitions, and an expanded Board of Directors, I have great confidence in Viacom's next phase, as the company explores the exciting possibilities ahead."

Debt comes down marginally 

Viacom Inc. has recorded a decline in total debt over the last one year. It stood at $11,913 million as on Sep. 30, 2016, down 3.03 percent or $372 million from $12,285 million on Sep. 30, 2015. Total debt was 52.93 percent of total assets as on Sep. 30, 2016, compared with 55.30 percent on Sep. 30, 2015. Debt to equity ratio was at 2.75 as on Sep. 30, 2016, down from 3.41 as on Sep. 30, 2015.