Q3 transformation isn't good for Viacom

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A deteriorating television advertising market and movies that couldn't compete with last year's "Transformers" juggernaut caused Viacom on Monday to post third-quarter net income that fell 37%.

Last year also benefited from a $192 million gain from the sale of publishing company Famous Music.

Overall, Viacom earned $401 million in the quarter on revenue that grew 4% to $3.4 billion.

Revenue at Viacom's media networks business rose 6% to $2.13 billion even as ad sales declined 2% worldwide. Cable and satellite fees were up 12%.

One especially bright spot during the most recent quarter was the video game "Rock Band."

Ancillary revenue at the media networks business shot up 36% to $313 million driven by "Rock Band." Viacom CEO Philippe Dauman said 7 million units of the game have shipped. (partialdiff)
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