NEW YORK (Reuters) - Cable network and movie studio owner Viacom Inc said on Thursday fourth-quarter profit rose 16 percent on higher advertising sales at its MTV Networks and strong sales of its Rock Band video game and "Transformers" DVDs.
For now, Viacom Chief Executive Philippe Dauman said he has seen no impact on the company from a weaker economic environment, which some analysts expect to hurt overall advertising spending.
Last year marked a turnaround for the company as ratings at its MTV Networks, Nickelodeon and BET cable networks rebounded, Paramount movies studio released hit titles and its burgeoning video games division booked big sales.
"The results have been greater efficiencies and a renewed urgency and effectiveness in everything we do," Viacom Executive Chairman Sumner Redstone said on a conference call.
Viacom said it expects net profit from continuing operations to grow in the low, double-digit percentage range every year from 2008 through 2010.
The outlook, roughly on par with Wall Street expectations, was seen as "conservative" by Standard & Poors analyst Tuna Amobi. "Theres upside in that guidance," he said. "The key is the film division. Its the swing factor."
Viacom posted a net profit of 559.5 million, or 86 cents per share, up from 480.8 million, or 69 cents per share, a year earlier.
Revenue rose 19 percent to 4.25 billion, beating analyst expectations of 4 billion in revenue.
Excluding items the companys profit of 84 cents beat Wall Street expectations of 82 cents, according to Reuters Estimates.
Global advertising revenue rose 9 percent to 1.39 billion.
Financial results were boosted by an 18 percent jump in cable networks revenue and 19 percent rise in film studios revenue.
Dauman also said the company had reached its target of exceeding 500 million in digital revenue for 2007. Viacom currently operates more than 300 online properties.
New businesses such as its growing video games division, which developed one of last holiday seasons big sellers its "Rock Band" game, contributed 460 million, up 72 percent from a year ago.
Dauman said Viacom does not expect to compete with other video game companies in what appears to be another round of consolidation, following Electronic Arts Incs unsolicited 1.9 billion bid to buy "Grand Theft Auto" maker Take-Two Interactive Software Inc.
Ahead of the financial report, Viacom shares closed down 60 cents, or 1.43 percent, at 41.30 on the New York Stock Exchange. The stock has risen about 12 percent in the past six months, outperforming CBS Corps 23 percent drop.
Both companies are controlled by Redstone.
(Reporting by Kenneth Li; editing by Carol Bishopric)
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