Viacom’s quarterly revenue dropped a greater-than-expected 5 per cent on a decline of DVD sales at Paramount Pictures, and its shares whipsawed throughout the trading day.

Its shares fell as much as 3 per cent before setting a new three-year high after Viacom chief executive Philippe Dauman struck a confident tone on the companys global and US advertising growth outlook. The shares later lost ground and were down 1.5 per cent in afternoon trading.

Mr Dauman expects a “particularly robust upfront this spring”, when television programmers sell advertising ahead of the coming season.

Viacoms drop in revenue came as rivals Time Warner and News Corp impressed Wall Street on Wednesday with strong advertising and overall revenue improvements. – (Reuters)