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Viacom Q3 Results Beat View

viacom aug08 lt

Viacom Inc. (VIAB,VIA) reported Thursday a 4.2 percent increase in profit for the third quarter from last year, while quarter revenues grew 3.7 percent. Both adjusted earnings per share and revenue beat analysts' estimates.

Bob Bakish, President & Chief Executive Officer said,"… Viacom's brands are strong, our strategy is delivering, and our investments continue to position us well for the future."

Meanwhile, CBS and Viacom are unlikely to reach an agreement for the merger of the companies, reports said.

According to reports, the company had expected to sign off on a deal in time for CBS's quarterly earnings, set to be announced later today, but an agreement was not reached in time.

CNBC reported that the delay is due to final negotiations over an exchange ratio for the deal. However, a deal is still expected later this week.

Viacom reported that its net earnings attributable to the company for the third-quarter rose 4.2 percent to $544 million from last year's $522 million, with earnings per share improving to $1.35 from $1.29 last year.

Adjusted net earnings from continuing operations attributable to the company for the quarter were $484 million or $1.20 per share, compared to $475 million or $1.18 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.06 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues grew 3.7 percent to $3.36 billion from $3.24 billion in the prior year. Analysts expected revenues of $3.33 billion.

Domestic advertising revenue rose 6% in the fiscal third quarter, driven by accelerating growth in Advanced Marketing Solutions. International advertising revenue increased 9% driven by strong growth in Argentina and the U.K.

In Thursday pre-market, VIAB is trading at $29.91, up $0.24 or 0.81 percent.

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