MTV owner Viacom's shares slump as ad revenues fall

 
Courtney Goldsmith
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MTV Cannes Party 2003
The company owns MTV, Nickelodeon and Paramount Pictures (Source: Getty)

Viacom's stock sank more than seven per cent today after the company that owns MTV and Paramount Pictures said advertising revenues will continue to fall.

Shares in Viacom were down 7.61 per cent to $32.40 in after-hours trading after initially rising nearly three per cent.

Domestic advertising revenue fell two per cent in the quarter, which was the 12th straight quarterly decline despite being in line with expectations. Viacom said it expects another low single-digit drop in the current quarter.

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The firm's revenues rose eight per cent in the third quarter ended 30 June to $3.36bn (£2.56bn), beating analysts' expectations of $3.29bn.

Net profit attributable to Viacom increased to $683m, or $1.70 per share, from $432m, or $1.09 per share, the previous year.

Viacom embarked on a turnaround plan in February and chief executive Bob Bakish said there is still work to be done.

"Every day we are working hard to reinvent Viacom and revitalize its brands for the future, and the early, tangible results are encouraging," Bakish said.

"There remains much work to be done, but we will continue to build on this progress for our shareholders, partners and fans."

Read more: Viacom plummets on poor results

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