Viacom said it is seeing a continued strengthening of the U.S. advertising market.

While the economic recovery is coming only in fits and starts, "the overall advertising market continues to strengthen," president and CEO Philippe Dauman told analysts in a conference call. Touting "growing momentum," he predicted a sequential improvement in U.S. ad growth in the current third quarter.

Chairman Sumner Redstone summarized the current state of the economy and ad market: "Of course, we are not all the way back, but the horizon is brighter."

Dauman also said Viacom plans to pursue an appeal in the YouTube litigation, saying a recent court ruling in YouTube's favor was "inconsistent with rulings of other courts."

The comments came after Viacom reported a higher second-quarter profit, even though revenue was unchanged from the year-ago period.

The entertainment company recorded $418 million in adjusted net earnings from continuing operations, up 40 percent from the year-ago period.

Revenue of $3.3 billion was flat as growth in affiliate, theatrical and advertising revenue offset lower home entertainment contributions.

Revenue at Viacom's media networks unit rose 6 percent, while revenue fell 10 percent.

Adjusted operating profit rose 14 percent at the networks division, while the film arm swung from a slight loss to a $69 million profit.

The former benefited as U.S. advertising revenue increased 4 percent amid a strong scatter market and MTV's second consecutive year-over-year ratings growth. Dauman also touted mid to high single-digit ad price increases in the recent upfront ad market across Viacom's cable networks and said the firm sold out a bit more than 50 percent of its ad inventory.

Worldwide affiliate fee revenue grew 11 percent in the latest quarter. Meanwhile, music video game Rock Band recorded lower revenue, but reduced its costs and actually posted a better profit.