Viacom Reports Earnings Growth for Fourth Quarter and Full-Year Fiscal 2012

 Viacom Reports Earnings Growth for Fourth Quarter and Full-Year Fiscal 2012

-- Fourth Quarter Adjusted Diluted Earnings Per Share Rises by 14%

-- Company Posts Full-Year Increases in Adjusted Operating Income, Adjusted
Net Earnings and Adjusted Diluted EPS

-- $3.4 Billion in Capital Returned to Shareholders in Fiscal 2012 Through
Share Repurchase Program and Dividends

PR Newswire

NEW YORK, Nov. 15, 2012

NEW YORK, Nov. 15, 2012 /PRNewswire-FirstCall/ --

2012 Results
                    Quarter Ended                    Year Ended
                    September 30,          B/(W)     September 30,       B/(W)
                                           2012 vs.                      2012
                                                                         vs.
(in millions,
except per share    2012        2011       2011      2012      2011      2011
amounts)
Revenues            $  3,363    $  4,053   (17)  %   $ 13,887  $ 14,914  (7) %
Operating income       1,050       929     13          3,901     3,710   5
Adjusted operating     1,050       1,059   (1)         3,901     3,854   1
income*
Net earnings from
continuing
operations             643         576     12          2,345     2,146   9
attributable to
Viacom
Adjusted net
earnings from
continuing             626         614     2           2,264     2,247   1
operations
attributable to
Viacom*
Diluted EPS from
continuing             1.24        1.00    24          4.36      3.61    21
operations
Adjusted diluted
EPS from continuing $  1.21     $  1.06    14    %   $ 4.21    $ 3.78    11  %
operations*
* Adjusted measures referenced in this release are detailed
in the Supplemental Disclosures at the end of this release.

Viacom Inc. (NASDAQ: VIAB, VIA) today reported results for the fiscal 2012
fourth quarter and full year ended September 30, 2012, with bottom line growth
and substantial increases in earnings per share.

(Logo: http://photos.prnewswire.com/prnh/20110811/NY51392LOGO)

Revenues in the fourth quarter declined 17% to $3.36 billion, due to lower
Filmed Entertainment revenues. Adjusted operating income of $1.05 billion was
essentially flat compared to the prior year's comparable quarter as the
revenue decrease was substantially offset by lower expenses. Adjusted net
earnings from continuing operations attributable to Viacom in the fourth
quarter rose 2% to $626 million, and adjusted diluted earnings per share from
continuing operations increased 14% to $1.21.

Revenues for the full year were $13.89 billion, down 7% from the previous
year, reflecting higher Media Networks revenues, more than offset by lower
Filmed Entertainment revenues. Full-year adjusted operating income grew 1% to
$3.9 billion, principally reflecting higher Media Networks revenues.
Full-year adjusted net earnings from continuing operations attributable to
Viacom rose 1% to $2.26 billion and full-year adjusted diluted earnings per
share from continuing operations increased 11% to $4.21 per diluted share,
reflecting the impact of the company's ongoing share repurchase program.

Sumner M. Redstone, Executive Chairman of Viacom, said, "Viacom continues to
create many of the world's best known and most exciting media properties, and
delights audiences across the globe with content for every screen imaginable.
Our unparalleled creative minds and Philippe's outstanding management position
Viacom perfectly for long-term growth."

Philippe Dauman, President and Chief Executive Officer of Viacom, said,
"Viacom is executing on its goals of continued investment in great content,
ongoing operational excellence and ever-increasing returns to shareholders.
Our Media Networks drove value in the quarter and the year through steady
growth in distribution revenues, and the production of new and engaging
programming that connects with valuable audiences. Viacom's media brands have
built unrivaled connections with their fans, creating unique experiences and
powerful opportunities for advertisers. We continue to invest in our future
across all platforms and geographies. Paramount also continued to achieve
solid margin growth in the fourth quarter and full year, and has an exciting
pipeline in place with eight films in the first fiscal quarter, including Jack
Reacher, DreamWorks Animation's Rise of the Guardians and the recently
released Flight.

"Viacom's balance sheet remains strong, providing the flexibility to invest in
our business while delivering capital directly to shareholders. Our
shareholders received $3.4 billion in capital in fiscal 2012 through our share
repurchase and dividends, and Viacom is firmly committed to achieving its
strong capital return goals."

Revenues
                      Quarter Ended               Year Ended
                      September 30,     B/(W)     September 30,       B/(W)
                                        2012 vs.                      2012 vs.
(in millions)         2012     2011     2011      2012      2011      2011
Media Networks        $ 2,290  $ 2,292  -         $ 9,194   $ 9,145   1     %
Filmed                  1,087    1,793  (39)        4,820     5,923   (19)
Entertainment
Eliminations            (14)     (32)   NM         (127)     (154)   NM
 Total revenues $ 3,363  $ 4,053  (17)  %   $ 13,887  $ 14,914  (7)   %
NM - Not Meaningful

Quarterly revenues were $3.36 billion, a decrease of 17% from $4.05 billion in
the prior year. Media Networks revenues were flat at $2.29 billion,
principally reflecting increased affiliate fees offset by lower advertising
and ancillary revenues. Domestic affiliate revenues increased 12%, driven by
rate increases and higher digital revenues. Worldwide affiliate revenues
increased 11%. Domestic advertising revenues declined 6% and worldwide
advertising revenues decreased 7%. Filmed Entertainment revenues declined 39%
to $1.09 billion, principally due to the number and mix of theatrical and home
entertainment titles released in the quarter, and reflecting difficult
comparisons with the significant impact of Transformers: Dark of the Moon in
the fourth quarter of 2011. TV and ancillary revenues in the Filmed
Entertainment segment rose by 19% and 21%, respectively.

Full-year revenues were $13.89 billion, a 7% decline compared to the prior
fiscal year, driven by lower theatrical and home entertainment revenues in the
Filmed Entertainment segment. Media Networks revenues rose $49 million to
$9.19 billion, reflecting an 11% increase in affiliate revenue to $3.89
billion that was partially offset by a 5% decrease in advertising revenues to
$4.76 billion. Domestic affiliate revenues increased 10% and domestic
advertising revenues declined 4%. Filmed Entertainment revenues decreased 19%
to $4.82 billion.

Operating Income
                        Quarter Ended               Year Ended
                        September 30,     B/(W)     September 30,     B/(W)
                                          2012 vs.                    2012 vs.
(in millions)           2012     2011     2011      2012     2011     2011
Media Networks          $ 933    $ 958    (3)   %   $ 3,889  $ 3,848  1     %
Filmed Entertainment      195      185    5           325      341    (5)
Corporate expenses        (48)     (47)   (2)         (192)    (207)  7
Equity-based              (30)     (35)   14          (122)    (128)  5
compensation
Eliminations              -        (2)    NM          1        -      NM
Adjusted operating      $ 1,050  $ 1,059  (1)       $ 3,901  $ 3,854  1
income
Restructuring             -        (130)  NM          -        (144)  NM
Operating income        $ 1,050  $ 929    13    %   $ 3,901  $ 3,710  5     %
NM - Not Meaningful

Quarterly adjusted operating income was essentially flat at $1.05 billion, due
to a 3% decline in the Media Networks segment partially offset by an increase
in Filmed Entertainment. Media Networks results reflected a slight increase
in expenses driven by higher operating costs associated with increased
programming investment, substantially offset by lower selling, general and
administrative expenses. The 5% growth at Filmed Entertainment was driven by
higher TV and digital revenues and the beneficial impact of previously
announced strategic cost savings initiatives.

Full-year adjusted operating income increased $47 million, or 1%, to $3.90
billion from $3.85 billion last year. Media Networks adjusted operating
income increased $41 million, principally reflecting the net increase in
revenues. Higher operating expenses driven by programming investment were
substantially offset by decreases in selling, general and administrative
expenses and lower depreciation and amortization. Filmed Entertainment
adjusted operating income decreased $16 million, principally reflecting a
difficult comparison with the one-time benefit from the sale of certain Marvel
distribution rights in the prior year, partially offset by this year's
increased digital revenues.

Quarterly adjusted net earnings from continuing operations attributable to
Viacom rose 2% to $626 million. The increase reflects gains from foreign
exchange and a lower effective corporate tax rate. Adjusted diluted earnings
per share from continuing operations for the quarter were $1.21, a 14%
increase from $1.06 in the prior year's comparable quarter.

Full-year adjusted net earnings from continuing operations attributable to
Viacom rose to  $2.264 billion, an increase  of  1% over the prior fiscal
year. The improvement was principally due to growth in adjusted operating
income. Full-year adjusted diluted earnings per share from continuing
operations increased 11% to $4.21, principally reflecting fewer outstanding
shares.

Stock Repurchase Program

For the quarter ended September 30, 2012, Viacom repurchased 14.2 million
shares under its stock repurchase program, for an aggregate purchase price of
$700 million. During the year ended September 30, 2012, Viacom repurchased
59.9 million shares for an aggregate price of $2.8 billion. As of November
14, 2012, Viacom had $4.420 billion remaining in its $10 billion stock
repurchase program. 

Debt

At September 30, 2012, total debt outstanding, including capital lease
obligations, was $8.15 billion, compared with $7.37 billion at September 30,
2011. The Company's cash balances decreased to $848 million at September 30,
2012, compared with $1.02 billion at September 30, 2011.

About Viacom

Viacom is home to the world's premier entertainment brands that connect with
audiences through compelling content across television, motion picture, online
and mobile platforms in over 160 countries and territories. With media
networks reaching approximately 700 million global subscribers, Viacom's
leading brands include MTV, VH1, CMT, Logo, BET, CENTRIC, Nickelodeon, Nick
Jr., TeenNick, Nicktoons, Nick at Nite, COMEDY CENTRAL, TV Land, SPIKE, Tr3s,
Paramount Channel and VIVA. Paramount Pictures, celebrating its 100^th year in
2012 and creator of many of the most beloved motion pictures, continues today
as a major global producer and distributor of filmed entertainment. Viacom
operates a large portfolio of branded digital media experiences, including
many of the world's most popular properties for entertainment, community and
casual online gaming.

For more information about Viacom and its businesses, visit www.viacom.com.
Keep up with Viacom news by following Viacom's blog at blog.viacom.com and
Twitter feed at www.twitter.com/Viacom.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains both historical and forward-looking statements. All
statements that are not statements of historical fact are, or may be deemed to
be, forward-looking statements. Forward-looking statements reflect the
Company's current expectations concerning future results, objectives, plans
and goals, and involve known and unknown risks, uncertainties and other
factors that are difficult to predict and which may cause actual results,
performance or achievements to differ. These risks, uncertainties and other
factors include, among others: the public acceptance of the Company's
programs, motion pictures and other entertainment content on the various
platforms on which they are distributed; technological developments and their
effect in the Company's markets and on consumer behavior; competition for
audiences and distribution; the impact of piracy; economic conditions
generally, and in advertising and retail markets in particular; fluctuations
in the Company's results due to the timing, mix and availability of the
Company's motion pictures; changes in the Federal communications laws and
regulations; other domestic and global economic, business, competitive and/or
regulatory factors affecting the Company's businesses generally; and other
factors described in the Company's news releases and filings with the
Securities and Exchange Commission, including its 2012 Annual Report on Form
10-K and reports on Form 10-Q and Form 8-K. The forward-looking statements
included in this document are made only as of the date of this document, and
the Company does not have any obligation to publicly update any
forward-looking statements to reflect subsequent events or circumstances. If
applicable, reconciliations for any non-GAAP financial information contained
in this news release are included in this news release or available on the
Company's website at http://www.viacom.com.

VIACOM INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
                                        Quarter Ended     Year Ended
                                        September 30,     September 30,
(in millions, except per share          2012     2011     2012       2011
amounts)
Revenues                                $ 3,363  $ 4,053  $ 13,887   $ 14,914
Expenses:
 Operating                          1,564    2,185    6,993      7,868
 Selling, general and               691      741      2,757      2,921
administrative
 Depreciation and amortization      58       68       236        271
 Restructuring                      -        130      -          144
 Total expenses                     2,313    3,124    9,986      11,204
Operating income                          1,050    929      3,901      3,710
Interest expense, net                     (105)    (102)    (417)      (412)
Equity in net earnings (losses) of        (13)     (11)     12         40
investee companies
Loss on extinguishment of debt            -        -        (21)       (87)
Other items, net                          7        (9)      (5)        (6)
Earnings from continuing operations       939      807      3,470      3,245
before provision for income taxes
Provision for income taxes                (290)    (224)    (1,085)    (1,062)
Net earnings from continuing              649      583      2,385      2,183
operations
Discontinued operations, net of tax       7        -        (364)      (10)
Net earnings (Viacom and                  656      583      2,021      2,173
noncontrolling interests)
Net (earnings) losses attributable to     (6)      (7)      (40)       (37)
noncontrolling interests
Net earnings attributable to Viacom     $ 650    $ 576    $ 1,981    $ 2,136
Amounts attributable to Viacom:
 Net earnings from continuing      $ 643    $ 576    $ 2,345    $ 2,146
operations
 Discontinued operations, net of     7        -        (364)      (10)
tax
 Net earnings attributable to      $ 650    $ 576    $ 1,981    $ 2,136
Viacom
Basic earnings per share attributable
to Viacom:
 Continuing operations             $ 1.26   $ 1.01   $ 4.42     $ 3.65
 Discontinued operations           $ 0.01   $ -      $ (0.69)   $ (0.01)
 Net earnings                      $ 1.27   $ 1.01   $ 3.73     $ 3.64
Diluted earnings per share
attributable to Viacom:
 Continuing operations             $ 1.24   $ 1.00   $ 4.36     $ 3.61
 Discontinued operations           $ 0.02   $ -      $ (0.67)   $ (0.02)
 Net earnings                      $ 1.26   $ 1.00   $ 3.69     $ 3.59
Weighted average number of common
shares outstanding:
 Basic                               511.1    569.2    530.7      587.3
 Diluted                             517.9    577.0    537.5      594.3
Dividends declared per share of Class   $ 0.275  $ 0.25   $ 1.05     $ 0.80
A and Class B common stock



VIACOM INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                         September 30,
(in millions, except par value)                          2012        2011
ASSETS
Current assets:
 Cash and cash equivalents                     $ 848       $ 1,021
 Receivables, net                                2,533       2,732
 Inventory, net                                  832         828
 Deferred tax assets, net                        68          41
 Prepaid and other assets                        572         639
 Total current assets                 4,853       5,261
Property and equipment, net                                1,068       1,057
Inventory, net                                             4,205       4,239
Goodwill                                                   11,045      11,064
Intangibles, net                                           328         392
Other assets                                               751         788
Total assets                                             $ 22,250    $ 22,801
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                              $ 255       $ 386
 Accrued expenses                                943         1,193
 Participants' share and residuals               989         1,158
 Program rights obligations                      569         475
 Deferred revenue                                230         187
 Current portion of debt                         18          23
 Other liabilities                               826         520
 Total current liabilities            3,830       3,942
Noncurrent portion of debt                                 8,131       7,342
Participants' share and residuals                          533         487
Program rights obligations                                 642         771
Deferred tax liabilities, net                              5           123
Other liabilities                                          1,491       1,351
Redeemable noncontrolling interest                         179         152
Commitments and contingencies
Viacom stockholders' equity:
 Class A Common stock, par value $0.001,
375.0 authorized; 51.1 and 51.4
 outstanding, respectively                  -           -
 Class B Common stock, par value $0.001,
5,000.0 authorized; 455.9 and 506.9
 outstanding, respectively                  1           1
 Additional paid-in capital                      8,916       8,614
 Treasury stock, 267.1 and 207.2 common          (11,025)    (8,225)
shares held in treasury, respectively
 Retained earnings                               9,820       8,418
 Accumulated other comprehensive loss            (264)       (164)
 Total Viacom stockholders' equity    7,448       8,644
Noncontrolling interests                                   (9)         (11)
Total equity                                               7,439       8,633
Total liabilities and equity                             $ 22,250    $ 22,801

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

The following tables reconcile the Company's results for the quarter and year
ended September 30, 2012 and 2011 to adjusted results that exclude the impact
of certain items identified as affecting comparability ("Factors Affecting
Comparability"), including restructuring charges, extinguishment of debt and
discrete tax benefits. The Company uses consolidated adjusted operating
income, adjusted net earnings from continuing operations attributable to
Viacom and adjusted diluted earnings per share ("EPS") from continuing
operations, as applicable, among other measures, to evaluate the Company's
actual operating performance and for planning and forecasting of future
periods. The Company believes that the adjusted results provide relevant and
useful information for investors because they clarify the Company's actual
operating performance, make it easier to compare Viacom's results with those
of other companies and allow investors to review performance in the same way
as our management. Since these are not measures of performance calculated in
accordance with generally accepted accounting principles, they should not be
considered in isolation of, or as a substitute for, operating income, net
earnings from continuing operations attributable to Viacom and diluted EPS as
indicators of operating performance, and they may not be comparable to
similarly titled measures employed by other companies.

(in millions, except per share amounts)
                         Quarter Ended
                         September 30, 2012
                                                    Net Earnings
                                    Pre-tax         from          Diluted EPS
                                    Earnings        Continuing
                         Operating                                from
                                    from            Operations
                         Income     Continuing      Attributable  Continuing
                                                    to
                                    Operations^(1)                Operations
                                                    Viacom^(2)
Reported results         $  1,050   $     939       $    643      $    1.24
Factors Affecting
Comparability:
 Discrete     -             -              (17)          (0.03)
tax benefits^(5)
Adjusted results         $  1,050   $     939       $    626      $    1.21
                         Quarter Ended
                         September 30, 2011
                                                    Net Earnings
                                    Pre-tax         from          Diluted EPS
                                    Earnings        Continuing
                         Operating                                from
                                    from            Operations
                         Income     Continuing      Attributable  Continuing
                                                    to
                                    Operations^(1)                Operations
                                                    Viacom^(2)
Reported results         $  929     $     807       $    576      $    1.00
Factors Affecting
Comparability:
               130          130            90            0.15
Restructuring^(4)
 Discrete      -             -              (52)          (0.09)
tax benefits^(5)
Adjusted results         $  1,059   $     937       $    614      $    1.06
                         Year Ended
                         September 30, 2012
                                                    Net Earnings
                                    Pre-tax         from          Diluted EPS
                                    Earnings        Continuing
                         Operating                                from
                                    from            Operations
                         Income     Continuing      Attributable  Continuing
                                                    to
                                    Operations^(1)                Operations
                                                    Viacom^(2)
Reported results         $  3,901   $     3,470     $    2,345    $    4.36
Factors Affecting
Comparability:

Extinguishment of           -             21             13            0.02
debt^(3)
 Discrete     -             -              (94)          (0.17)
tax benefits^(5)
Adjusted results         $  3,901   $     3,491     $    2,264    $    4.21
                         Year Ended
                         September 30, 2011
                                                    Net Earnings
                                    Pre-tax         from          Diluted EPS
                                    Earnings        Continuing
                         Operating                                from
                                    from            Operations
                         Income     Continuing      Attributable  Continuing
                                                    to
                                    Operations^(1)                Operations
                                                    Viacom^(2)
Reported results         $  3,710   $     3,245     $    2,146    $    3.61
                    144          144            99            0.17
Restructuring^(4)

Extinguishment of           -             87             54            0.09
debt^(3)
 Discrete      -             -              (52)          (0.09)
tax benefits^(5)
Adjusted results         $  3,854   $     3,476     $    2,247    $    3.78
(1) Pre-tax earnings from continuing operations represent earnings before
provision for income taxes.
(2) The tax impact has been calculated using the rates applicable to the
adjustments presented.
(3) Adjusted results for the year ended September 30, 2012 exclude a
pre-tax debt extinguishment loss of $21 million on the

 redemptionofall $750million our outstanding 6.850% Senior Note due
2055. Adjusted results for the year ended September 30,

 2011 exclude apre-tax debtextinguishment loss of $87 million on the
repurchase of $582 million of our 6.250% Senior Notes

 due2016.
(4) Adjusted results for the quarter ended September 30, 2011 exclude $77
million and $53 million of restructuring charges at the Media

 Networksand Filmed Entertainment segments, respectively. Adjusted
results for the year ended September 30, 2011 also exclude

 $14million of employeeseparation costs attributable to the Media
Networks segment, which occurred in the third quarter.
(5) Adjusted results for the quarter and year ended September 30, 2012
exclude $17 million and $94 million of discrete tax benefits,

 respectively. The benefits recognized in the quarter are principally
derived from operating loss carryforwards. Adjusted results for

 theyear ended September 30, 2012 also include benefits from capital
loss carryforwards, as well as reserve releases resulting

 fromeffectively settled audits. Adjusted results for the quarter and
year ended September 30, 2011 exclude $52 million of discrete

 taxbenefits principally related to reserve releases resulting from
effectively settled audits.



SOURCE Viacom Inc.

Website: http://www.viacom.com
Contact: Press: Jeremy Zweig, Vice President, Corporate Communications,
+1-212-846-7503, jeremy.zweig@viacom.com, or Mark Jafar, Vice President,
Corporate Communications, +1-212-846-8961, mark.jafar@viacom.com; Investors:
James Bombassei, Senior Vice President, Investor Relations, +1-212-258-6377,
james.bombassei@viacom.com, or Pamela Yi, Director, Investor Relations,
+1-212-846-7581, pamela.yi@viacom.com