Viacom's morning talk-fest

Funny how earnings conference calls bring out the politician in many an executive. And with it, the illusion of success. So this morning, when Viacom announced its third-quarter financial results, Chairman Sumner Redstone was going on about all the strong numbers - and how the new CEO, Phillipe Dauman (he's the guy who replaced Tom Freston, who was fired) was doing such a terrific job.

Philippe is bringing a sense of executional rigor and urgency to the company. He is reviving the entrepreneurial spirit that has been such a major ingredient in the Viacom recipe for success. He and his team are quickly addressing every challenge and at the same time, laying out a long-term path for growth that is not only impressive, but really achievable. Equally important, Philippe is making sure that Viacom is not missing a step and that we stay on track to deliver our performance goals.

Now considering the short time that he's been in place, I'm truly pleased with the quarterly results we announced this morning which lay the foundation for greater operational success in the future. It's a new day, it's truly a new day at Viacom, and I am extremely enthusiastic about what we see ahead.

OK. But the thing of it is Viacom had a lousy quarter. Third-quarter operating income was down 15 percent from a year earlier - and that was before the $62 million one-time item for Freston's severance package. The cable networks (MTV, Comedy Central, Nickelodeon) did fine, with revenues up 10 percent. But the movie unit flopped, thanks to several disappointments ("World Trade Center," "The Last Kiss" and "Barnyard"). By the way, Dauman must have been trying to impress Redstone (this was his first conference call) because his "opening" remarks went on for almost as long as a full-length eature. This guy needs some editing.