Viacom revenue drops 16 percent in Q4 2012
Nickelodeon and Comedy Central parent Viacom (NYSE: VIA) said it saw revenue drop by 16 percent to $3.31 billion during the fourth quarter, which it blamed on the performance of its Paramount Pictures division and decreased ad revenue at Nickelodeon.
Revenue at Viacom's media networks division fell 2 percent to $2.39 billion. Viacom CEO Philippe Dauman told analysts on the company's earnings call Thursday that a 6 percent decrease in ad revenue from the media networks division was the result of lower ratings at Nickelodeon. The kids' network is beginning to post improved ratings with the launch of original programs such as a new version of Teenage Mutant Ninja Turtles.
Viacom said its affiliate revenue increased by 4 percent in the fourth quarter thanks to increased license fees from pay TV distributors such as DirecTV (Nasdaq: DTV) and Comcast (Nasdaq: CMCSA). The media giant reported $473 million (93 cents per share) in net income, down from the $591 million ($1.06 per share) that it reported for the fourth quarter of 2011.
Special report: Cable in the fourth quarter of 2012