President and CEO of Viacom Philippe Dauman and his wife seen at the 40th annual Friends of the Los Angeles Free Clinic in Beverly Hills in this November 20, 2006 file photo.. Photo Credit: REUTERS/Gus Ruelas

By Kenneth Li

NEW YORK (Reuters) - Viacom Inc., home to the MTV networks, said on Monday it would boost advertising sales from digital operations and evaluate its international presence as it focuses on these growth areas in coming years.

Viacom will do a better job cultivating profits from its digital operations, which include the Internet and wireless programming businesses, by creating more inventory or space for advertisers, said Chief Executive Philippe Dauman.

"We can do a much better job of monetizing our digital presence," Dauman told a Credit Suisse media and telecommunications investor conference in New York. "In the digital area, we have tremendous room to grow."

Viacom, which also owns the Paramount movie studio, has been criticized for its Internet strategy, which some on Wall Street say is falling behind big media rivals such as News Corp.

News Corp. shares have risen 34 percent since the beginning of the year, buoyed by a belief its purchase of popular social network site MySpace will provide a lucrative distribution site for the company's television shows, such as "The Simpsons" and "American Idol."

At the end of the third quarter, Viacom said it will likely generate about $500 million in sales from digital properties, such as its high speed Internet TV site, Overdrive.

Dauman reaffirmed the target on Monday.

Viacom, whose MTV Networks is one of the most broadly distributed cable networks globally, will also closely review each of its far-flung outposts and reevaluate its ownership structure in some areas.

Dauman said the company would consider dropping its ownership stakes in slow-growth regions and consider licensing properties to local media companies.

Viacom has struck licensing deals for its programming in Thailand and Indonesia, while it has joint ventures and minority stakes in other international territories to distribute its TV programming.

In all of its international regions, Dauman said the company is targeting improvements in profit margin growth of 10 percent to 15 percent over the next few years.

"If we can't achieve it, some people will have issues with me," he said.

Viacom Class B shares rose 45 cents, or 1.2 percent to $38.56 cents in afternoon trading on the New York Stock Exchange.