8-3-2012- Yet another media company taking a hit on its earnings. Viacom (NASDAQ:VIAB) posted EPS of $0.97 for the third quarter, below the $1 analysts were expecting. The company also had revenue fall 14% year over year to $3.24 billion, also below the $3.49 billion estimate.
Viacom attributed the loss in earnings and revenue to lower ad sales in its television business. Ratings have been falling on many of its networks, especially Nickelodeon which had a 27% drop in viewership.
But, the new deal agreement with DirecTV could offset the lower ad sales. The new contract with be giving Viacom an extra $600 million annually for the next seven years.
Currently, Viacom shares are relatively flat to $45.83. For more financial news and analysis follow us on Twitter @FNNOnline or check out our website at fnno.com.