CORRECTED-UPDATE 2-Viacom movie revenue down sharply, hits profit

Thu Jan 31, 2013 10:40am EST

(Corrects spelling of Nickelodeon network in paragraph two)

By Jennifer Saba

Jan 31 (Reuters) - Viacom Inc said quarterly revenue fell 16 percent on weaker results from its movie studio Paramount Pictures and lower advertising revenue at its stable of cable networks.

Film revenue tumbled 37 percent, while domestic advertising revenue fell 6 percent for the second quarter in a row, the media conglomerate reported on Thursday. Viacom's cable networks include MTV, Nickelodeon and Comedy Central.

In the past year, Viacom has been struggling with declining cable ratings and has been trying to gain a steadier foothold with its programming. It has invested in a new slate of TV shows, including "Teenage Mutant Ninja Turtles," "Catfish" and "Buckwild," which are beginning to show promise.

"It looks a little weaker than expected in most places," said Pivotal Research analyst Brian Wieser.

Wieser said he had hoped to see slightly better numbers for advertising revenue. He had estimated a 4 percent decline.

Overall, fourth-quarter revenue totaled $3.3 billion, below analysts' average forecast of $3.48 billion, according to Thomson Reuters I/B/E/S.

Revenue from its media networks slipped 2 percent to $2.4 billion, while film revenue dropped 37 percent to $975 million.

Net income fell to $473 million, or 93 cents per share, from $591 million, or $1.06 per share, a year earlier.

Earnings before special items were 91 cents a share, beating analysts' average forecast by a penny. (Reporting by Jennifer Saba in New York; Editing by Jeffrey Benkoe and John Wallace)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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