Viacom Misses on Q3 Earnings, Revenue

by Christopher Freeburn | August 3, 2012 1:05 pm

Viacom (NASDAQ:VIAB[1]) said on Friday that it earned $534 million during its fiscal third quarter[2], down 7% from the same period last year.

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[3]) that saw its channels darken for DirecTV subscribers for 10 days[4].

Endnotes:
  1. VIAB: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIAB
  2. during its fiscal third quarter: http://www.businessweek.com/news/2012-08-03/viacom-profit-misses-estimates-on-lower-advertising-sales
  3. TV: http://studio-5.financialcontent.com/investplace/quote?Symbol=TV
  4. its channels darken for DirecTV subscribers for 10 days: http://investorplace.com/2012/07/viacom-channels-to-be-dropped-by-directtv/

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