VIACOM ADVERTISES LOWER EARNINGS
Earlier in the year, the corporate giant anticipated high single digit growth from 2002’s $24.6 billion and a double-digit advance on last year’s income of $4.6 billion. This has been revised to mid- to high single digit increases for both.
The adjustment in expected growth caused the media behemoth’s stock to dip 1.44, dropping to its lowest level since April yesterday at 38.90, though it jumped back up to 39.45 early on 9/25.
“While the economic recovery has translated into robust national advertising sales growth,” a company statement reads, “the pace of recovery in local advertising markets going into the fourth quarter is not as rapid as had been anticipated.”
Viacom made close to half its revenue from advertising in the first half of 2003. An analyst cited by the New York Times estimates that the company makes 25% of its profit from local advertising.
