Viacom Adjusts Dividend, Updates Q4 Guidance; Interim CEO Tom Dooley To Depart

(RTTNews) - The Board of Viacom (VIAB, VIA) announced measures to improve the company's financial flexibility. The company said it is reducing dividend payout to preserve capital and will proceed to access debt capital markets in the near term to improve liquidity. Viacom's quarterly dividend will be adjusted to $0.20 per share on both its Class A and Class B common stock. Viacom has ended the process of seeking a minority investor in Paramount Pictures at the current time, in order to consider all options available to the company.

Viacom announced that Tom Dooley, Interim President and CEO, has informed the Board of his decision to depart the company. He has agreed to remain in the position through November 15, 2016. Tom Dooley said: "While this was a difficult decision for me, I have great admiration for our new Board and I feel that they will be best able to execute on their vision for the company in the hands of a new President and CEO."

Viacom said it expects adjusted earnings per share for the fourth quarter to be in the range of $0.65 to $0.70. The revision accounts for a programming impairment charge of $115 million in its filmed entertainment segment in the fourth quarter. The company expects reported earnings per share to be in the range of $0.55 to $0.60.