Viacom Loss Smaller Than Expected

NEW YORK —  Viacom Inc. had a smaller first-quarter loss than expected as MTV Networks and Howard Stern’s movie, “Private Parts,” offset declines at its troubled Blockbuster Entertainment unit.

Viacom said it had a loss from continuing operations of $23.8 million, or 11 cents a share. That’s better than the expected loss of 15 cents a share, based on a poll of 15 analysts by IBES International Inc. A year earlier, Viacom had income from continuing operations of $19.4 million, or a penny a share.

Viacom Chairman Sumner Redstone is seeking to chart a new course for its Blockbuster video and music store unit after the resignation two weeks ago of the unit’s chairman.

Viacom blamed the loss mainly on higher expenses and fewer hits from Hollywood, which resulted in weaker results at Blockbuster. In addition, a German pay-television contract boosted first-quarter cash flow last year.

The results “give a little bit of relief in the short term, but the Street needs to see more material evidence of improvement at Blockbuster before they’ll jump back aboard the stock,” said analyst Frederick Moran at Furman Selz.