Viacom (NASDAQ:VIAB) said on Friday that it earned $534 million during its fiscal third quarter, 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) that saw its channels darken for DirecTV subscribers for 10 days.