Viacom, the media group owned by Sumner Redstone, reported better-than-expected earnings on the back of a strong quarter for its film division, which released hits such as Shrek the Third.

The company, which owns MTV Networks, Paramount and Dreamworks film studios and the children-focused Nickelodeon cable channels, saw second quarter profits fall slightly to $434m, or 54 cents a share, from $437m in the same period a year ago. Its shares were 2 per cent higher in early afternoon trading in New York, at $38.63.