Sales at the media giant dropped 14% compared to 2011, falling to $3.24 billion.
Adjusted EPS for the quarter was 97 cents.
Wall Street had been looking for adjusted EPS of $1 on sales of $3.49 billion, Bloomberg noted.
Viacom shares rose about 1% in Friday afternoon trading.
The company generates 92% of operating income from its cable networks, but has seen ratings declines at some of its flagship channels, including Nickelodeon recently.
Advertising sales during the quarter fell 9%, the company’s worst ad sales decline since March 2009.
Viacom has raised fees for its channels provoking confrontations with pay-TV service providers. It recently ended a contract dispute with DirecTV (NASDAQ:DTV) that saw its channels darken for DirecTV subscribers for 10 days.