Viacom Reports Results For Second Quarter 2013

                Viacom Reports Results For Second Quarter 2013

-- Media Networks Revenues Increase 2% to $2.23 Billion, Driven by Higher
Advertising, Affiliate and Ancillary Revenues

-- Operating Income of $847 Million, Adjusted Diluted EPS of $0.96

-- Stock Repurchase Program and Dividend Returned $1.7 Billion to Shareholders
in the First Half of the Fiscal Year

PR Newswire

NEW YORK, May 1, 2013

NEW YORK, May 1, 2013 /PRNewswire-FirstCall/ --

Fiscal Year 2013 Results
                      Quarter Ended                 Six Months Ended
                      March 31,         B/(W)       March 31,         B/(W)
                                        2013 vs.                      2013 vs.
(in millions, except    2013   2012     2012      2013       2012     2012
per share amounts)
Revenues              $ 3,135  $ 3,331  (6)   %   $ 6,449    $ 7,283  (11)  %
Operating income        847      932    (9)         1,644      1,948  (16)
Net earnings from
continuing
operations              481      588    (18)        954        1,179  (19)
attributable to
Viacom
Adjusted net
earnings from
continuing              481      535    (10)        942        1,126  (16)
operations
attributable to
Viacom*
Diluted EPS from
continuing              0.96     1.08   (11)        1.89       2.14   (12)
operations
Adjusted diluted EPS
from continuing       $ 0.96   $ 0.98   (2)   %   $ 1.87     $ 2.04   (8)   %
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 financial results for the
fiscal second quarter, which ended March 31, 2013. Revenues decreased 6% to
$3.14 billion, primarily due to lower Filmed Entertainment revenues and
partially offset by an increase in Media Networks revenues as advertising
revenue increased over the prior year. Operating income declined 9% to $847
million, reflecting lower Filmed Entertainment results and an increase in
Media Networks programming investment expense, partially offset by the
increase in advertising and affiliate revenues. Adjusted net earnings from
continuing operations attributable to Viacom were $481 million, and adjusted
diluted earnings per share from continuing operations were $0.96 per diluted
share.

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

Sumner M. Redstone, Executive Chairman of Viacom, said, "Viacom continues to
build momentum by developing unparalleled entertainment content for audiences
throughout the world. I am fully confident that our proven executive team
will deliver even greater success, by driving Viacom's vibrant businesses and
returning outstanding value for shareholders."

Philippe Dauman, President and Chief Executive Officer of Viacom, said,
"Viacom's ongoing strategy of focused investment in creative content and broad
multiplatform distribution of our brands accelerated improvement in our
business in the quarter. Viacom's media networks are continuing to develop
innovative new original programming for all of our audiences, and building
unique experiences for our established brands that move beyond the television
screen. As a result, ratings are up at several networks, and advertising
revenues have returned to year-over-year growth, up two percent, with eight
points of sequential improvement over the December quarter. Paramount is also
executing on its strategic plan, and successfully positioned G.I. Joe:
Retaliation, Hansel and Gretel: Witch Hunters and Pain & Gain for global
success, and the year ahead remains strong, with audiences eagerly awaiting
our upcoming tentpole releases - Star Trek Into Darkness and World War Z."



Revenues
                      Quarter Ended                 Six Months Ended
                      March 31,         B/(W)       March 31,         B/(W)
                                        2013 vs.                      2013 vs.
(in millions)           2013   2012     2012      2013       2012     2012
Media Networks        $ 2,233  $ 2,190  2     %   $ 4,627    $ 4,638  -
Filmed Entertainment    941      1,169  (20)        1,916      2,727  (30)  %
Eliminations            (39)     (28)   NM          (94)       (82)   NM
Total revenues        $ 3,135  $ 3,331  (6)   %   $ 6,449    $ 7,283  (11)  %
NM - Not Meaningful



Quarterly revenues of $3.14 billion represented a 6% decline from the prior
year. Media Networks revenues rose 2% to $2.23 billion, due to an increase in
advertising, affiliate and ancillary revenues. Domestic and worldwide
advertising revenues both increased 2%, benefitting from recent improvements
in ratings at select networks. Domestic affiliate revenues increased 3%.
Excluding the impact of digital distribution arrangements, which are affected
by the timing of available programming, the domestic affiliate revenue growth
rate was in the low-double digits. Worldwide affiliate revenues increased
2%.

Filmed Entertainment revenues declined 20% to $941 million. Worldwide
theatrical revenues decreased 15% from the prior year, principally reflecting
lower carryover revenues in the quarter compared to carryover contributions
from Mission Impossible – Ghost Protocol in the fiscal second quarter of
2012. Revenues from current quarter releases Hansel and Gretel: Witch Hunters
and G.I. Joe: Retaliation were higher than revenues from titles  released in
the prior year quarter. Worldwide home entertainment revenues declined 38%,
due to the number and mix of titles released, and lower carryover and catalog
revenues.



Operating Income (Loss)
                        Quarter Ended               Six Months Ended
                        March 31,       B/(W)       March 31,         B/(W)
                                        2013 vs.                      2013 vs.
(in millions)             2013  2012    2012      2013       2012     2012
Media Networks          $ 873   $ 893   (2)   %   $ 1,903    $ 2,022  (6)   %
Filmed Entertainment      65      115   (43)        (74)       84     NM
Corporate expenses        (57)    (48)  (19)        (117)      (101)  (16)
Equity-based              (29)    (28)  (4)         (60)       (57)   (5)
compensation
Eliminations              (5)     -     NM          (8)        -      NM
Operating income        $ 847   $ 932   (9)   %   $ 1,644    $ 1,948  (16)  %
NM - Not Meaningful



Quarterly operating income decreased 9% to $847 million in the quarter,
reflecting lower home entertainment and theatrical revenues and increased
Media Networks programming expenses, partially offset by higher Media Networks
revenues.

Quarterly adjusted net earnings from continuing operations attributable to
Viacom were $481 million, a decline of 10%, principally driven by the decline
in operating income. Adjusted diluted earnings per share from continuing
operations for the quarter were $0.96, a 2% decline from the prior year's
comparable quarter.

Stock Repurchase Program

For the quarter ended March 31, 2013, Viacom repurchased 11.7 million shares
under its stock repurchase program, for an aggregate purchase price of $700
million. As of March 31, 2013, Viacom had 487 million shares of common stock
outstanding. As of April 30, 2013, Viacom had $3.13 billion remaining in its
$10 billion stock repurchase program. 

Debt

At March 31, 2013, total debt outstanding, including capital lease
obligations, was $8.93 billion, compared with $8.15 billion at September 30,
2012. The Company's cash balances were $1.26 billion at March 31, 2013, an
increase from $848 million at September 30, 2012.

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, America's oldest film studio
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 atblog.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 future 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 and other programming; 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
but not limited to 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       Six Months Ended
                                        March 31,           March 31,
(in millions, except per share          2013      2012      2013      2012
amounts)
Revenues                                $ 3,135   $ 3,331   $ 6,449   $ 7,283
Expenses:
 Operating                          1,539     1,645     3,302     3,830
 Selling, general and               689       695       1,386     1,384
administrative
 Depreciation and amortization      60        59        117       121
 Total expenses                     2,288     2,399     4,805     5,335
Operating income                          847       932       1,644     1,948
Interest expense, net                     (110)     (103)     (220)     (208)
Equity in net earnings of investee        16        5         40        15
companies
Loss on extinguishment of debt            -         (21)      -         (21)
Other items, net                          (6)       (1)       1         (5)
Earnings from continuing operations       747       812       1,465     1,729
before provision for income taxes
Provision for income taxes                (258)     (213)     (494)     (529)
Net earnings from continuing              489       599       971       1,200
operations
Discontinued operations, net of tax       (3)       (3)       (6)       (382)
Net earnings (Viacom and                  486       596       965       818
noncontrolling interests)
Net earnings attributable to              (8)       (11)      (17)      (21)
noncontrolling interests
Net earnings attributable to Viacom     $ 478     $ 585     $ 948     $ 797
Amounts attributable to Viacom:
 Net earnings from continuing      $ 481     $ 588     $ 954     $ 1,179
operations
 Discontinued operations, net of     (3)       (3)       (6)       (382)
tax
 Net earnings attributable to      $ 478     $ 585     $ 948     $ 797
Viacom
Basic earnings per share attributable
to Viacom:
 Continuing operations             $ 0.98    $ 1.09    $ 1.92    $ 2.17
 Discontinued operations             (0.01)    -         (0.01)    (0.71)
 Net earnings                      $ 0.97    $ 1.09    $ 1.91    $ 1.46
Diluted earnings per share
attributable to Viacom:
 Continuing operations             $ 0.96    $ 1.08    $ 1.89    $ 2.14
 Discontinued operations             -         (0.01)    (0.01)    (0.69)
 Net earnings                      $ 0.96    $ 1.07    $ 1.88    $ 1.45
Weighted average number of common
shares outstanding:
 Basic                               492.0     537.5     496.8     544.1
 Diluted                             500.3     544.4     504.7     550.8
Dividends declared per share of Class   $ 0.275   $ 0.25    $ 0.55    $ 0.50
A and Class B common stock



VIACOM INC.
CONSOLIDATED BALANCE SHEETS
                                                  March 31,      September 30,
                                                  2013           2012
(in millions, except par value)                   (Unaudited)
ASSETS
Current assets:
 Cash and cash equivalents            $ 1,260        $ 848
 Receivables, net                       2,545          2,533
 Inventory, net                         755            832
 Deferred tax assets, net               47             68
 Prepaid and other assets               687            572
 Total current assets        5,294          4,853
Property and equipment, net                       1,023          1,068
Inventory, net                                    4,033          4,205
Goodwill                                          11,048         11,045
Intangibles, net                                  305            328
Other assets                                      735            751
Total assets                                    $ 22,438       $ 22,250
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                     $ 220          $ 255
 Accrued expenses                       855            943
 Participants' share and residuals      839            989
 Program rights obligations             589            569
 Deferred revenue                       248            230
 Current portion of debt                18             18
 Other liabilities                      761            826
 Total current               3,530          3,830
liabilities
Noncurrent portion of debt                        8,915          8,131
Participants' share and residuals                 540            533
Program rights obligations                        516            642
Deferred tax liabilities, net                     465            5
Other liabilities                                 1,430          1,491
Redeemable noncontrolling interest                165            179
Commitments and contingencies
Viacom stockholders' equity:
Class A Common stock, par value
$0.001, 375.0 authorized; 51.1 and 51.1           -              -
outstanding, respectively
Class B Common stock, par value
$0.001, 5,000.0 authorized; 435.6 and 455.9       -              1
outstanding, respectively
 Additional paid-in capital             9,127          8,916
 Treasury stock, 292.1 and 267.1        (12,425)       (11,025)
common shares held in treasury, respectively
 Retained earnings                      10,488         9,820
 Accumulated other comprehensive        (301)          (264)
loss
 Total Viacom                6,889          7,448
stockholders' equity
Noncontrolling interests                          (12)           (9)
Total equity                                      6,877          7,439
Total liabilities and equity                    $ 22,438       $ 22,250



SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

The following tables reconcile our results for the six months ended March 31,
2013 and the quarter and six months ended March 31, 2012 to adjusted results
that exclude the impact of certain items identified as affecting comparability
("Factors Affecting Comparability"), including the extinguishment of debt and
discrete tax benefits. We use 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 our actual operating performance
and for planning and forecasting of future periods. We believe that the
adjusted results provide relevant and useful information for investors because
they clarify our 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 accounting principles generally
accepted in the United States of America ("GAAP"), 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. There were no
adjustments to our results for the quarter ended March 31, 2013.



(in millions, except per share amounts)
                Six Months Ended
                March 31, 2013
                                                                   Diluted EPS
                               Pre-tax            Net Earnings     from
                               Earnings           from
                  Operating    from Continuing    Continuing       Continuing
                                                  Operations
                  Income       Operations^(1)     Attributable     Operations
                                                  to Viacom
Reported        $ 1,644      $ 1,465            $ 954            $ 1.89
results
Factors
Affecting
Comparability:

Discrete tax      -            -                  (12)            (0.02)
benefits^(2)
Adjusted        $ 1,644      $ 1,465            $ 942            $ 1.87
results
                Quarter Ended
                March 31, 2012
                                                                   Diluted EPS
                               Pre-tax            Net Earnings     from
                               Earnings           from
                  Operating    from Continuing    Continuing       Continuing
                                                  Operations
                  Income       Operations^(1)     Attributable     Operations
                                                  to Viacom^(3)
Reported        $ 932        $ 812              $ 588            $ 1.08
results
Factors
Affecting
Comparability:

Extinguishment    -            21                 13              0.02
of debt^(4)

Discrete tax      -            -                  (66)            (0.12)
benefits^(2)
Adjusted        $ 932        $ 833              $ 535            $ 0.98
results



                Six Months Ended
                March 31, 2012
                                                                   Diluted EPS
                               Pre-tax            Net Earnings     from
                               Earnings           from
                  Operating    from Continuing    Continuing       Continuing
                                                  Operations
                  Income       Operations^(1)     Attributable     Operations
                                                  to Viacom^(3)
Reported        $ 1,948      $ 1,729            $ 1,179          $ 2.14
results
Factors
Affecting
Comparability:

Extinguishment    -            21                 13             0.02
of debt ^(4)

Discrete tax      -            -                  (66)            (0.12)
benefits^(2)
Adjusted        $ 1,948      $ 1,750            $ 1,126          $ 2.04
results



(1) Pre-tax earnings from continuing operations represent earnings before
    provision for income taxes.
    Adjusted results for the six months ended March 31, 2013 exclude $12
    million of discrete tax benefits, principally reflecting the release of
(2) tax reserves with respect to certain effectively settled tax positions.
    Adjusted results for the quarter and six months ended March 31, 2012
    exclude $66 million of discrete tax benefits principally related to
    certain operating and capital loss carryforwards.
(3) The tax impact has been calculated using the rates applicable to the
    adjustments presented.
    Adjusted results for the quarter and six months ended March 31, 2012
(4) exclude a pre-tax debt extinguishment loss of $21 million on the
    redemption of all $750 million of our outstanding 6.850% Senior Notes due
    2055.



SOURCE Viacom Inc.

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