Business Blog Posts

The company, whose shares rose 2.4 percent in premarket trading, also said on Thursday it plans to sell the Rock Band music video game developer Harmonix ending a disappointing foray into the gaming business.

"The results are strong," said Christopher Marangi, an analyst at Gabelli & Co. "The decision to sell Rock Band is welcome news. The franchise has been a disappointment and a drag on earnings."

U.S. advertising revenue rose 8 percent. A strong market for purchasing last minute commercial spots helped push ad revenue up for the third consecutive quarter of improving growth.

Viacom Chief Executive Philippe Dauman credited the rise in revenue to higher ratings at its cable networks. "This creative success coupled with the improving economy has fueled our advertising revenues," Dauman said in a statement.

Viacom's total revenue rose 5 percent to $3.33 billion beating analysts' average forecast of $3.30 billion according to Thomson Reuters I/B/E/S.

Net income for the third quarter was $189 million, or 31 cents per share, compared with $463 million, or 76 cents per share, a year earlier.

Excluding $27 million in one-time tax-related gains, the company's earnings from continuing operations totaled 75 cents a share, beating analysts average estimate of 70 cents per share.

Revenue at its media networks division, home to MTV, Comedy Central and Nickelodeon, rose 8 percent to $2.1 billion. Global affiliate revenue - fees paid by cable, satellite and phone companies - at for the cable networks advanced 10 percent to almost $800 million.

Revenue for film entertainment, which includes Paramount Pictures, rose 1 percent to $1.2 billion thanks to a boost in TV license fees. Worldwide DVD sales fell 13 percent.

Its shares rose 90 cents to $39 in premarket trading.

(Reporting by Jennifer Saba; Editing by Derek Caney)