Viacom's Quarterly Profit Skids 37% From Year Ago

Viacom, owner of MTV Networks and Paramount movie studio, reported a 37 percent drop in third-quarter earnings, further evidence that major media companies are suffering from an intensifying advertising slump.

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Viacom , which issued an earnings warning last month, said on Monday that third-quarter net profit fell to $401 million, or 65 cents a share, from $641 million, or 96 cents a share, a year earlier.

"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,'' Viacom Chief Executive Philippe Dauman said in a statement.

Viacom's adjusted earnings from continuing operations were 55 cents per share. Before the warning, Wall Street expected Viacom to earn 61 cents a share, but since then, analysts have lowered expectations to 54 cents, according to Reuters Estimates.

Viacom, which also owns Nickelodeon, said revenues rose 4 percent to $3.4 billion, as strong sales of the Rock Band video game helped offset weak U.S. advertising and sharply lower theatrical revenues.

Shares of the media company are down over 50 percent so far this year.

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