Viacom posted adjusted earnings of 77 cents a share for the three months ending in September, the company said, up 12% from the same period last year but shy of the FactSet consensus forecast of 86 cents. The miss was partly due to a $59 million expense related to ending a film financing deal with two Chinese media companies.
Revenue of $3.32 billion exceeded expectations of $3.24 billion, enough for a 3% increase from the same period a year earlier last year. Viacom posted $13.3 billion in sales for its fiscal 2017.
Shares of New York-based Viacom were falling 4.5% in pre-market trading after closing on Wednesday at $24.61.
"Viacom is stronger and our momentum continues to build," Bakish said in the earnings statement. "To accelerate our transition to long-term, sustainable growth, we are ramping up the evolution of Viacom's media business to better serve next generation platforms and solutions while continuing to diversify our business and strengthen our global portfolio of flagship brands."
"In the coming year, we will continue to focus on unleashing the full creativity and energy of Viacom to create greater value for our shareholders and audiences," Bakish added.
Revenue at Viacom's Media Networks group rose 3% to $2.55 billion with the bulk of the gains coming from non-U.S. markets even as domestic revenues fell 2% to $1.96 billion. The division's advertising revenues rose 6% to $1.22 billion, Viacom said, but were again held down by flat U.S. numbers "reflecting ratings growth offset by an overall decline in cable subscribers and the strategic reduction of unit loads."
Affiliate revenues were 1% higher to $1.15 billion, again because of international growth, while domestic affiliate revenues fell 3% to $948 million.
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