By Saabira Chaudhuri
Viacom Inc.'s (VIA, VIAB) fiscal third-quarter earnings fell 7%
as the media company saw revenue from its media networks and filmed
entertainment segments slump.
The operator of cable television channels like Nickelodeon and
MTV has seen top-line pressure in recent quarters as the U.S.
television-advertising market has shown signs of softness. In July,
Viacom and DirecTV Group Inc. (DTV) ended a blackout of channels
like MTV and Nickelodeon for DirecTV subscribers, as the two sides
argued over programming fees.
The company on Friday reported domestic advertising revenue was
down 7% in the latest period. Worldwide advertising revenue slumped
9%.
Viacom reported a profit of $534 million, down from $574 million
a year earlier. Per-share earnings rose to $1.01 from 97 cents as
the number of shares outstanding fell 10%. Adjusted for items such
as restructuring costs, per-share earnings from continuing
operations fell to 97 cents from 99 cents. Revenue slid 14% to
$3.24 billion.
Analysts polled by Thomson Reuters expected per-share earnings
of $1 on revenue of $3.49 billion.
The company's media networks division, its biggest segment by
revenue, saw its top line fall 5.2% driven by lower advertising and
ancillary revenue. Filmed-entertainment revenue slumped 29%, as
Viacom's Paramount released three films during the quarter as
opposed to four in the same period last year.
Class B shares closed at $45.83 Thursday and were inactive
premarket. The stock is down 6.5% in the past three months.
Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com
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