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US media conglomerate Viacom has posted a third-quarter revenue increase of five per cent to $3.33 billion, reflecting a growth in its networks and film business.

Adjusted operating income of $837 million was up four per cent over the prior year's adjusted results, with growth in Media Networks driven by an eight per cent rise in domestic advertising revenues and 10 per cent growth in worldwide affiliate fees, partially offset by lower profits in the film segment due to the timing and mix of theatrical releases.

Adjusted net earnings from continuing operations attributable to Viacom grew seven per cent to $461 million. Viacom also announced that it plans to sell Harmonix, which developed the Rock Band music video game franchise. Accordingly, the company reclassified the business as a discontinued operation and has recast its results from previous periods to reflect this change

Revenues for the fiscal increased by one per cent to $9.34 billion as growth in affiliate and ad revenues was partially offset by a decline in the film segment due primarily to fewer home entertainment releases. Adjusted operating income was up 14 per cent to $2.21 billion for the year, driven by growth in Media Networks and a $94 million improvement in film versus the prior year.

Viacom executive chairman Sumner M. Redstone said, "Viacom once again has delivered strong results that reflect the enduring value of our brands, our focused strategy and our disciplined management team. We continue to benefit from the improving economy and look forward to even brighter days ahead."

Viacom president and CEO Philippe Dauman added, "Investing in our content and our brands has been and will continue to be the cornerstone of Viacom's strategy. We never wavered from it even as we managed through the global recession. As a result, many of our cable networks today are achieving new ratings highs and producing hit shows that feed the cultural dialogue in the U.S. and abroad. This creative success coupled with the improving economy has fueled our advertising revenues, which were up eight per cent in the US this quarter, our third consecutive quarter of sequential improvement."

The motion picture business continues on its trajectory of controlling overhead expenses as it pursues a film strategy focused on franchises and brands. "The studio is off to a great start in fiscal 2011 with the box office success of Jackass 3D and Paranormal Activity 2," Dauman added.