Viacom: Ad outlook good despite 2Q drop in profits

Viacom struck a hopeful note on adv for the rest of 2009 even as the media conglomerate by Sumner Redstone controlled saw 2nd-Q profit plunge on weak ad markets, video game sales & box-office returns. Viacom CEO Dauman said Viacom, which owns BET & MTV cable TV networks, was "very pleased" with the nearly completed bidding in so-called upfronts, in which media buyers bid on commercial time ahead of the coming TV season. Ads no longer count on dramatic cuts in prices as we see signs of recovery, said Phillipe Dauman. David Bank of RBC Capital Markets said its comments on adv were more bullish than he expected but may only be posturing as the bidding for ad time continues. "I think upfronts are in a really odd state of flux right now. They're going to turn out better than everyone thought 3 or 4 mos ago, but no one knows exactly how negotiations are going," he said. Viacom, which also owns the Paramount Pictures movie studio & the "Rock Band" video game franchise, said it earned $277 million, or 46