Viacom said the weakening economy helped cut its net earnings by 37% in the third quarter.
The company, which owns MTV Networks, said net earnings were $401 million, or 65 cents a share, down from $641 million, or 96 cents a share, in the year-earlier quarter.
Revenues edged up 4% to $3.4 billion.
“The economic environment and ongoing uncertainty have posed new challenges for the media industry, and Viacom has not been immune to the impact of these forces. Over the past two years, however, we have been judiciously managing our finances and operations,” said CEO Philippe Dauman in a statement. “Thanks to these efforts, we believe that we will be well positioned both in the near term and as the global economy regains its footing over time. With a talented team, world-class brands, a strong balance sheet and significant cash flow, we will continue to drive our strategy forward.”
Revenues for Viacom’s media networks, including MTV, Nickelodeon, Comedy Central and BET, rose 6% to $2.1 billion. The company’s ancillary category, which was up 36% to $313 million, contributed to that revenue growth, fueled by sales of the video game Rock Band.
Domestic advertising revenues were down 3%. The company attributed the drop to ratings softness at some channels.
Operating income for the media networks group was down 4% to $761 million. In addition to lower ad sales, higher programming expenses contributed to the drop in income for the media networks group, the company said.
For the full year 2008, the company said it expects to deliver mid-single to low double-digit growth in adjusted diluted earnings per share from continuing operations.
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Posted
Nov 03 2008, 03:39 PM
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