Viacom 3Q profit down 7% on TV ad decline

The results missed Wall Street estimates, and Viacom shares fell $1.83, or 4 percent, to $44 in premarket trading, below the level touched during the regular trading day this year.

Viacom earned $534 million, or $1.01 per share, in the April to June quarter. That compares with $574 million, or 97 cents per share, in the same period last year.

Excluding some one-time tax benefits, earnings were 97 cents per share in the fiscal third quarter, 3 cents below the average analyst estimate as polled by FactSet.

The New York-based company's revenue fell 14 percent to $3.24 billion, 7 percent below analysts' estimate of $3.49 billion.

Revenue fell 5 percent at Viacom's TV networks as U.S. advertising fell 7 percent. Viacom has been struggling with a ratings decline for key channels, particularly Nickelodeon. It says it's investing aggressively to create new hits. TV accounts for two-thirds of Viacom's overall revenue and nearly all of the profits.

Revenue dropped 29 percent at Paramount, which released three films in the quarter: "Madagascar 3: Europe's Most Wanted," "The Dictator" and "Titanic 3-D." In the same quarter last year, it had four blockbusters: "Kung Fu Panda 2," "Thor," "Super 8" and "Transformers: Dark of the Moon."