Viacom's U.S. Ad Revenues Down 9% In Its Q3

Viacom continued the parade of weak advertising results among media companies -- and that didn’t please stock market investors.

Viacom’s domestic advertising for its media networks sank 9%, which follows a 5% drop in its fiscal second quarter and a 6% drop in its fiscal first quarter. All this comes from continued double-digit percentage ratings declines at its TV networks. In addition, worldwide advertising revenues were 2% lower.

In midday Thursday trading, Viacom’s stock was down a big 10% to $46.17.

Still, worldwide growth from affiliate fees --2% -- boosted cable networks' overall revenue to come in flat versus the same quarterly period a year before -- $2.6 billion. Cable networks also witnessed higher sales to subscription video on demand and other platforms -- up 10% in revenues.



Cable networks were also subject to unfavorable currency exchange issues. Without these, cable network revenues would have climbed 2%.

Viacom’s Paramount film division had tougher news -- off 44% to $479 million. It had difficult comparisons to a year before when it had “Transformers: Age of Extinction.” Also its home-entertainment revenues was down 30% to $199 million.

Company-wide revenues sank 11% to $3.1 billion; net income was down 1% to $645 million.

1 comment about "Viacom's U.S. Ad Revenues Down 9% In Its Q3".
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  1. Darrin Stephens from McMann & Tate, August 6, 2015 at 4:23 p.m.

    Keep in mind Viacom's revenue is down whilst they are adding commerical time to their programming.

    A greater reckoning is coming.

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