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Viacom Reports 37% Earnings Drop

Viacom said Monday that its net earnings were down 37% to $401 million for the third quarter (ending Sept. 30).

Operating income was down 15% to $689 million and net earnings were down 14% to $385 million.

That came despite a 4% increase in revenues to $3.4 billion. Media network revenue was up 6% to $2.128 billion, but income was down 4% to $761 million.

That media revenue boost was thanks in part to a 36% increase in ancillary revenues to $313 million, driven by sales of computer game, Rock Band. Cable network affiliate revenues were up 12% to $600 million. But domestic ad revenues were down 3%.

Viacom said pay TV network license fees were up 16% to $342 million, topping theatrical revenues, which were down 36% to $312 million.