Viacom reported lower third-quarter profits as revenue
dropped sharply.
Net earnings fell 7% to $534 million from $574 million, a
year ago. Earning per diluted share rose to $1.01, vs. 97 cents a year ago.
Revenues were down 14% to $3.24 billion.
"Despite challenging year-on-year comparisons with last
year's strong third quarter, Viacom remains committed to pursuing its long-term
strategy of international expansion, continued programming investment and
ongoing focus on operational discipline," Philippe Dauman, president and
CEO, said in a statement. "Looking forward, we will continue to operate
efficiently to maintain our competitive and creative edge, and over time,
return significant value to shareholders."
Operating income at Viacom's Media Networks group, which
includes MTV, Nickelodeon and Comedy Central, was down 10% to $934 million.
Revenues were down 5% to $2.27 billion.
Domestic advertising revenues decreased 7%. The company said
revenues were impacted by the timing of event driven programming compared to
the prior year's quarter. Worldwide advertising revenues were down 9%.
Affiliate revenues were down 1%, compared to a year ago when the company
registered digital streaming payments. Worldwide affiliate fees were up 1%.
The company has also been struggling with lower ratings at
some of its networks, including Nickelodeon and MTV.
