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Viacom Reports Full-Year and Fourth Quarter 2009 Results
- Adjusted Operating Income Grew 24% in the Fourth Quarter with Gains in Filmed Entertainment and Media Networks
- Adjusted Net Earnings from Continuing Operations and Adjusted Diluted EPS from Continuing Operations Both Rose 43% in Fourth Quarter

NEW YORK, Feb 11, 2010 /PRNewswire via COMTEX/ -- Viacom Inc. (NYSE: VIA, VIA.B) today reported strong double-digit growth in its fourth quarter 2009 adjusted operating income, adjusted net earnings from continuing operations and adjusted diluted earnings per share (EPS), reflecting an outstanding performance in its Filmed Entertainment segment and solid growth in Media Networks.




    2009 Results

                               Quarter Ended            Year Ended
                                December 31,   B/(W)    December 31,   B/(W)
                               -------------   -----    ------------   -----
    (in millions, except                     2009 vs.                 2009 vs.
     per share amounts)         2009   2008    2008     2009    2008    2008
                                ----   ----  --------   ----    ----  --------

    Revenues                   $4,098  4,243   (3%)   $13,619  14,625   (7%)
    Operating income            1,092    475    N/M     2,904   2,523    15%
    Adjusted operating
     income(1)                  1,152    929    24%     2,997   2,977     1%
    Net earnings from
     continuing operations
     attributable to Viacom       694    172    N/M     1,591   1,233    29%
    Adjusted net earnings from
     continuing operations
     attributable to Viacom(1)    663    464    43%     1,559   1,491     5%
    Diluted EPS from continuing
     Operations                  1.14   0.28    N/M      2.62    1.97    33%

    Adjusted diluted EPS from
     continuing operations(1)   $1.09   0.76    43%     $2.56    2.38     8%

    N/M = Not Meaningful
    (1) Adjusted measures referenced in this release are detailed in the
        Supplemental Disclosures at the end of this release.



Revenues in the fourth quarter ended December 31, 2009 declined 3% to $4.1 billion with lower results in Media Networks and Filmed Entertainment. Adjusted operating income of $1.15 billion was up 24% over the fourth quarter 2008 results, reflecting a significant increase in profitability in the Filmed Entertainment segment and cost containment measures across the Company. Adjusted net earnings from continuing operations attributable to Viacom increased 43% to $663 million and adjusted diluted EPS from continuing operations were $1.09, up 43% over the fourth quarter 2008 results.

Revenues for the full year 2009 decreased 7% to $13.62 billion as growth in affiliate revenues was offset by decreases in feature film, ancillary and advertising revenues. The 1% gain in adjusted operating income of $3.0 billion for the year was driven by a $148 million increase in the Filmed Entertainment segment. Adjusted net earnings from continuing operations attributable to Viacom grew 5% to $1.56 billion and adjusted diluted earnings per share were $2.56, an 8% increase over the prior year's adjusted results of $2.38 per share.

Sumner M. Redstone, Executive Chairman of Viacom, said, "Viacom's results over the past year have been extraordinary and illustrate the value of a well planned strategy and execution. Despite the economic challenges, we performed extremely well across our media networks and motion picture operations. As a result of the quality of our operations and wealth of creative talent throughout the Company, we are well positioned for success not only today but long into the future."

Philippe Dauman, President and Chief Executive Officer of Viacom, said, "Our disciplined and content-focused strategy helped Viacom close out the year with a stronger balance sheet, a streamlined cost structure and a reinvigorated creative mandate across the company. Despite a global recession that impacted all aspects of our business, the multiple revenue streams of our cable networks helped temper the impact of an industry-wide downturn in advertising and retail, and also allowed us to continue to invest in new programming to build our brands. The resurgence of BET and MTV's recent ratings gains are strong examples of the relevance our brands have with their target audiences.

"Paramount Pictures significantly boosted its profitability in 2009 as the studio's strategy of producing a smaller slate of films, anchored by franchises, began to pick up momentum. We also were pleased to see renewed consumer demand for our new DVD and Blu-ray releases in the fourth quarter. Looking ahead, Paramount has built a very strong slate for 2010, kicking off next week with the release of Martin Scorsese's Shutter Island."




    Revenues

    Revenues               Quarter Ended               Year Ended
                            December 31,    B/(W)      December 31,    B/(W)
                           -------------    -----      ------------    -----
                                           2009 vs.                   2009 vs.
    (in millions)           2009    2008     2008     2009     2008     2008
                            ----    ----   --------   ----     ----   --------

    Media Networks         $2,333  $2,475    (6%)    $8,288   $8,756    (5%)
    Filmed Entertainment    1,791   1,807    (1%)     5,482    6,033    (9%)
    Eliminations              (26)    (39)   N/M       (151)    (164)   N/M
                              ---     ---              ----     ----
    Total revenues         $4,098  $4,243    (3%)   $13,619  $14,625    (7%)
                           ------  ------           -------  -------

    N/M = Not Meaningful



Fourth Quarter 2009 revenues of $4.1 billion declined 3% from $4.24 billion in fourth quarter 2008. Media Networks revenues of $2.33 billion, a 6% decrease from the prior year's fourth quarter results, reflect a 37% decline in ancillary revenues to $290 million. This was driven primarily by lower sales of Rock Band bundles. Worldwide advertising revenues declined 3% in the quarter to $1.30 billion with domestic advertising revenues down 4%. Worldwide affiliate revenues grew 11% to $741 million. Filmed Entertainment revenues declined 1% to $1.79 billion primarily due to a 73% year-over-year decrease in theatrical revenues to $93 million, which reflects a difficult comparison with the number and mix of films released in the fourth quarter of last year. Worldwide home entertainment revenues of $1.15 billion represent a 12% increase over the prior year's fourth quarter results and reflect the strong performance of the DVD and Blu-ray releases of Transformers 2: Revenge of the Fallen, Star Trek and G.I. Joe: The Rise of Cobra. Worldwide television license fees grew 27% to $445 million.

Full Year 2009 revenues of $13.62 billion declined 7% from $14.63 billion in 2008. Media Networks revenues were down 5% to $8.29 billion due to lower ancillary and advertising revenues, which were partially offset by growth in affiliate fees. Worldwide affiliate revenues increased 11% to $2.90 billion in 2009. Lower year-over-year sales of Rock Band contributed to a 31% decline in worldwide ancillary revenues to $982 million. Worldwide advertising sales of $4.41 billion represent a 7% decrease versus the prior year, including a 6% decline in domestic advertising revenues, which reflects softness in the global advertising market. Filmed Entertainment revenues declined 9% to $5.48 billion for the year primarily due to lower theatrical and home entertainment revenues, which were partially offset by year-over-year growth in television revenues. A smaller slate of films was the primary driver of the 23% decrease in worldwide theatrical revenues of $1.32 billion. Worldwide home entertainment revenues were down 8% to $2.50 billion for the year reflecting fewer releases as well as continuing softness in the market. Higher pay TV fees helped fuel a 4% increase in television license fees to $1.38 billion.




    Operating Income

    Operating Income (Loss)    Quarter Ended              Year Ended
                                December 31,  B/(W)      December 31,  B/(W)
                               -------------  -----      ------------  -----
                                             2009 vs.                 2009 vs.
    (in millions)              2009     2008   2008      2009    2008   2008
                               ----     ---- --------    ----    ---- --------

    Media Networks             $921     $898     3%    $3,010  $3,118    (3%)
    Filmed Entertainment        298       84    N/M       236      88    N/M
    Corporate                   (67)     (55)  (22%)     (248)   (231)   (7%)
    Eliminations                  -        2    N/M        (1)      2    N/M
                                ---      ---              ---     ---
       Total adjusted
        operating income     $1,152     $929    24%    $2,997  $2,977     1%
                             ------     ----           ------  ------

    Adjustments(1)              (60)    (454)   N/M       (93)   (454)   N/M
                                ---     ----              ---    ----
    Total operating income   $1,092     $475    N/M    $2,904  $2,523    15%
                             ------     ----           ------  ------

    N/M = Not Meaningful
    (1) Adjustments are detailed in the Supplemental Disclosures at the end
        of this release.



Fourth Quarter 2009 adjusted operating income increased 24% to $1.15 billion compared with $929 million in the prior year's fourth quarter. This result was driven by a $214 million increase in profitability in the Filmed Entertainment segment, reflecting a higher year-over-year contribution from the fourth quarter domestic DVD and Blu-ray releases, the strong theatrical performance of Paranormal Activity and ongoing cost-saving initiatives. Media Networks operating income grew 3% to $921 million driven by higher affiliate revenues.

Full Year 2009 adjusted operating income grew 1% to $3.0 billion versus $2.98 billion in 2008, reflecting a significant increase in profitability in the Filmed Entertainment segment primarily fueled by the success of Transformers: Revenge of the Fallen, Star Trek and Paranormal Activity as well as the benefit of restructuring and other cost-containment initiatives. Filmed Entertainment operating income grew from $88 million in 2008 to $236 million in 2009. Media Networks operating income declined 3% to $3.01 billion as a result of lower advertising revenues and Rock Band losses.

Fourth Quarter 2009 adjusted net earnings from continuing operations attributable to Viacom increased 43% to $663 million as compared with $464 million in the prior year's fourth quarter. This growth reflects higher operating income, a favorable impact from foreign exchange fluctuations and lower interest expense. Fourth quarter adjusted diluted net EPS from continuing operations were $1.09, an increase of 43% over the fourth quarter 2008 adjusted diluted net EPS from continuing operations of $0.76.

Full Year 2009 adjusted net earnings from continuing operations attributable to Viacom increased 5% to $1.56 billion versus $1.49 billion, principally due to higher operating income. Full year 2009 adjusted diluted net EPS from continuing operations were $2.56 compared with $2.38 in 2008.

Debt

At December 31, 2009, total debt outstanding, including capital leases, decreased to $6.77 billion compared with $8.0 billion at December 31, 2008. In addition, the Company paid down the entire balance of its asset securitization program, which was $950 million at December 31, 2008. The Company's cash balances decreased to $298 million at December 31, 2009 compared with $792 million at December 31, 2008.

About Viacom

Viacom, consisting of BET Networks, MTV Networks and Paramount Pictures, is the world's leading entertainment content company. It engages audiences on television, motion picture and digital platforms through many of the world's best known entertainment brands, including MTV, VH1, CMT, Logo, Nickelodeon, Nick at Nite, Nick Jr., COMEDY CENTRAL, Spike TV, TV Land, BET, Rock Band, AddictingGames, Atom, Neopets, Shockwave and Paramount Pictures. Viacom's global reach includes approximately 170 channels and 430 digital media properties in more than 160 countries and territories.

For more information about Viacom and its businesses, visit http://www.viacom.com/.

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 games on the various platforms on which they are distributed; economic conditions generally, and in advertising and retail markets in particular; competition for audiences and distribution; the impact of piracy; technological developments and their effect in the Company's markets and on consumer behavior; fluctuations in the Company's results due to the timing, mix and availability of the Company's motion pictures and games; 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 2009 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.




    VIACOM INC.
    CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)

                                       Quarter Ended          Year Ended
                                        December 31,          December 31,
    (in millions, except               ---------------     -----------------
     earnings per share amounts)       2009       2008     2009         2008
                                       ----       ----     ----         ----

      Revenues                       $4,098     $4,243  $13,619      $14,625
      Expenses:
        Operating                     2,106      2,795    7,587        8,787
        Selling, general and
         administrative                 751        849    2,737        2,910
        Depreciation and
         amortization                   149        124      391          405
                                        ---        ---      ---          ---

            Total expenses            3,006      3,768   10,715       12,102

      Operating income                1,092        475    2,904        2,523
        Interest expense, net          (105)      (119)    (430)        (482)
        Equity in net losses of
         investee companies             (20)       (26)     (77)         (74)
        Loss on extinguishment
         of debt                          -          -      (84)           -
        Other items, net                 10        (74)     (37)        (112)
                                        ---        ---      ---         ----

      Earnings from continuing
       operations before
       provision for income taxes       977        256    2,276        1,855
      Provision for income taxes       (316)       (79)    (708)        (605)
                                       ----        ---     ----         ----

      Net earnings from
       continuing operations            661        177    1,568        1,250
      Discontinued operations,
       net of tax                         -          1       20           18
                                        ---        ---      ---          ---

      Net earnings (Viacom and
       noncontrolling interests)        661        178    1,588        1,268
      Net losses (earnings)
       attributable to
       noncontrolling interest           33         (5)      23          (17)
                                        ---        ---      ---          ---

      Net earnings attributable
       to Viacom                       $694       $173   $1,611       $1,251
                                       ====       ====   ======       ======

      Amounts attributable to
       Viacom:
        Net earnings from
         continuing operations         $694       $172   $1,591       $1,233
        Discontinued operations,
         net of tax                       -          1       20           18
                                        ---        ---      ---          ---
        Net earnings attributable
         to Viacom                     $694       $173   $1,611       $1,251
                                       ====       ====   ======       ======

      Basic earnings per share
       attributable to Viacom:
        Continuing operations         $1.14      $0.28    $2.62        $1.97
        Discontinued operations          $-         $-    $0.03        $0.03
        Net earnings per share
         of Viacom                    $1.14      $0.28    $2.65        $2.00

      Diluted earnings per share
       attributable to Viacom:
        Continuing operations         $1.14      $0.28    $2.62        $1.97
        Discontinued operations          $-         $-    $0.03        $0.03
        Net earnings per share
         of Viacom                    $1.14      $0.28    $2.65        $2.00

      Weighted average number of
       common shares outstanding:
        Basic                         607.4      611.2    607.1        624.7
        Diluted                       609.4      611.5    608.3        625.4



    VIACOM INC.
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)

                                                 December 31,   December 31,
    (in millions, except par value)                  2009          2008
                                                 ------------   ------------
    ASSETS
    Current assets:
        Cash and cash equivalents                     $298          $792
        Receivables, net (including retained
         interests in securitizations)               2,881         2,271
        Inventory, net                                 779           881
        Deferred tax assets, net                       147           203
        Prepaid and other assets                       325           355
                                                       ---           ---
            Total current assets                     4,430         4,502
    Property and equipment, net                      1,179         1,145
    Inventory, net                                   3,731         4,133
    Goodwill                                        11,401        11,470
    Intangibles, net                                   570           674
    Other assets                                       589           563
                                                       ---           ---
    Total assets                                   $21,900       $22,487
                                                   =======       =======
    LIABILITIES AND EQUITY
    Current liabilities:
        Accounts payable                              $248          $574
        Accrued expenses                             1,169         1,304
        Participants' share and residuals            1,090         1,537
        Program rights obligations                     404           384
        Deferred revenue                               323           442
        Current portion of debt                        123           105
        Other liabilities                              394           496
                                                       ---           ---
            Total current liabilities                3,751         4,842
    Noncurrent portion of debt                       6,650         7,897
    Participants' share and residuals                  739           488
    Program rights obligations                         523           621
    Deferred tax liabilities, net                       89            12
    Other liabilities                                1,303         1,556
    Redeemable noncontrolling interest                 168           148
    Commitments and contingencies
    Viacom stockholders' equity:
        Class A Common stock, par value $0.001,
         375.0 authorized; 52.4 and 57.4
         outstanding, respectively                       -             -
        Class B Common stock, par value $0.001,
         5,000.0 authorized; 555.0 and 549.4
         outstanding, respectively                       1             1
        Additional paid-in capital                   8,287         8,186
        Treasury stock, 151.5 common shares held
         in treasury                                (5,725)       (5,725)
        Retained earnings                            6,106         4,496
        Accumulated other comprehensive income
         (loss)                                         35           (49)
                                                        --            --
              Total Viacom stockholders' equity      8,704         6,909

    Noncontrolling interests                           (27)           14
                                                       ---            --
    Total equity                                     8,677         6,923
                                                     -----         -----
    Total liabilities and equity                   $21,900       $22,487
                                                   =======       =======




VIACOM INC.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

The following tables reconcile the Company's results for the quarter and years ended December 31, 2009 and 2008, respectively, to adjusted results that exclude the impact of restructuring and other charges, impairment charges, early extinguishment of debt and net discrete tax benefits. The Company uses adjusted operating income, adjusted net earnings from continuing operations attributable to Viacom and adjusted diluted EPS as applicable, among other measures, to evaluate the Company's 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 the Company's management. Since adjusted operating income, adjusted net earnings from continuing operations attributable to Viacom and adjusted diluted EPS are not measures of performance calculated in accordance with 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.




    Consolidated Results

    (in millions, except                  Quarter Ended
     per share amounts)                  December 31, 2009
                        -------------------------------------------------
                                                    Net
                                                 Earnings
                                      Pre-tax      from
                                     Earnings    Continuing
                                       from      Operations
                                    Continuing  Attributable
                         Operating  Operations   to Viacom
                           Income      (1)          (2)       Diluted EPS
                         ---------  ----------  ------------  -----------

    Reported results      $1,092        $977         $694        $1.14
    Adjustments:
       Asset Impairment(3)    60          60           19         0.03
       Discrete tax
        benefits(5)            -           -          (50)       (0.08)
                             ---         ---          ---        -----
    Adjusted results      $1,152      $1,037         $663        $1.09
                          ------      ------         ----        -----



    (in millions, except                  Year Ended
     per share amounts)                December 31, 2009
                         ------------------------------------------------
                                                    Net
                                                 Earnings
                                     Pre-tax       from
                                     Earnings    Continuing
                                       from      Operations
                                    Continuing  Attributable
                         Operating  Operations   to Viacom
                           Income      (1)          (2)       Diluted EPS
                         ---------  ----------  ------------  -----------

    Reported results      $2,904      $2,276       $1,591        $2.62
    Adjustments:
       Restructuring and
        other charges(3)      93          93           40         0.06
       Extinguishment of
        debt(4)                -          84           52         0.09
       Discrete tax
        benefits(5)            -           -         (124)       (0.21)
                             ---         ---         ----        -----
    Adjusted results      $2,997      $2,453       $1,559        $2.56
                          ------      ------       ------        -----



    VIACOM INC.
    SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

    Consolidated Results, con't.

    (in millions, except                  Quarter Ended
     per share amounts)                 December 31, 2008
                         ------------------------------------------------
                                                    Net
                                                 Earnings
                                     Pre-tax       from
                                    Earnings     Continuing
                                       from      Operations
                                    Continuing  Attributable
                         Operating  Operations   to Viacom
                           Income      (1)          (2)       Diluted EPS
                         ---------  ----------  ------------  -----------

    Reported results        $475        $256         $172        $0.28
    Adjustments:
       Discrete tax
        benefits(5)            -           -           (9)       (0.01)
       Restructuring and
        other charges(6)     454         454          286         0.47
       Impairment of
        investments(7)         -          15           15         0.02
                             ---         ---          ---         ----
    Adjusted results        $929        $725         $464        $0.76
                            ----        ----         ----        -----



    (in millions, except                 Year Ended
     per share amounts)              December 31, 2008
                         ------------------------------------------------
                                                    Net
                                                 Earnings
                                      Pre-tax      from
                                     Earnings    Continuing
                                       from      Operations
                                    Continuing  Attributable
                         Operating  Operations   to Viacom
                           Income      (1)          (2)       Diluted EPS
                         ---------  ----------  ------------  -----------

    Reported results      $2,523      $1,855       $1,233        $1.97
    Adjustments:
       Discrete tax
        benefits(5)            -           -          (55)       (0.09)
       Restructuring and
        other charges(6)     454         454          286         0.46
       Impairment of
        investments(7)         -          27           27         0.04
                             ---         ---          ---         ----
    Adjusted results      $2,977      $2,336       $1,491        $2.38
                          ------      ------       ------        -----

    (1)  Pre-tax earnings from continuing operations represent earnings
         before provision for income taxes.
    (2)  The tax impact of adjustments has been calculated where
         appropriate using the applicable rates in effect for the period
         presented.
    (3)  For the quarter ended December 31 2009, adjusted results exclude
         a $60 million non-cash impairment charge related to certain
         broadcast licenses held by a 32%-owned consolidated entity in the
         Media Networks segment. For the year ended December 31, 2009,
         adjusted results also exclude $33 million of severance charges
         attributable to the Media Networks and Filmed Entertainment
         segments, which occurred in the second quarter of 2009.
    (4)  For the year ended December 31, 2009, adjusted results exclude
         an $84 million pre-tax loss on the early extinguishment of a
         portion of the Company's 5.75% Senior Notes due 2011.
    (5)  2009 adjusted results exclude $50 million and $124 million of
         net discrete tax benefits for the quarter and year ended
         December 31, 2009, respectively.  2008 adjusted results exclude
         $9 million and $55 million of net discrete tax benefits for the
         quarter and year ended December 31, 2008, respectively.  The
         majority of the discrete tax benefits were the result of
         effectively settled audits.
    (6)  2008 adjusted results exclude $454 million for the quarter and
         year ended December 31, 2008 of restructuring and other charges
         across all segments.  The charge principally relates to programming
         abandonments, severance, the write-down of film inventory and other
         charges.
    (7)  2008 adjusted results exclude $15 million and $27 million,
         respectively, of pre-tax non-cash investment impairment charges
         for the quarter and year ended December 31, 2008.



    VIACOM INC.
    SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION

    Segment Operating Income (Loss)

                                           Quarter Ended
    (in millions)                       December  31, 2009
                     ---------------------------------------------------------
                                                                       Total
                      Media       Filmed                             Operating
                     Networks  Entertainment Corporate  Eliminations   Income
                     --------  ------------- ---------  ------------ ---------
    Reported results   $861          $298      $(67)           $-     $1,092
    Adjustments:
       Asset
        Impairment(1)    60             -         -             -         60
                        ---           ---       ---           ---        ---
    Adjusted results   $921          $298      $(67)           $-     $1,152
                       ----          ----      ----           ---     ------



                                           Year Ended
    (in millions)                       December 31, 2009
                    ---------------------------------------------------------
                                                                      Total
                      Media     Filmed                              Operating
                    Networks Entertainment  Corporate  Eliminations   Income
                    -------- -------------  ---------  ------------ ---------
    Reported results  $2,934        $219     $(248)          $(1)     $2,904
    Adjustments:
       Restructuring
        charges(1)        76          17         -             -          93
                         ---         ---       ---           ---         ---
    Adjusted results  $3,010        $236     $(248)          $(1)     $2,997
                      ------        ----     -----           ---      ------



                                           Quarter Ended
    (in millions)                        December 31, 2008
                     ---------------------------------------------------------
                                                                       Total
                       Media       Filmed                            Operating
                     Networks  Entertainment Corporate  Eliminations   Income
                     --------  ------------- ---------  ------------  --------
    Reported results    $509         $22      $(58)           $2       $475
    Adjustments:
       Restructuring
        and other
        charges(2)       389          62         3             -        454
                         ---         ---       ---           ---        ---
    Adjusted results    $898         $84      $(55)           $2       $929
                        ----         ---      ----           ---       ----



                                            Year Ended
    (in millions)                       December 31, 2008
                    ----------------------------------------------------------
                                                                      Total
                      Media       Filmed                             Operating
                    Networks  Entertainment Corporate  Eliminations   Income
                    --------  ------------- ---------  ------------  ---------
    Reported results  $2,729         $26     $(234)           $2     $2,523
    Adjustments:
         Restructuring
         and other
         charges(2)      389          62         3             -        454
                         ---         ---       ---           ---        ---
    Adjusted
     results          $3,118         $88     $(231)           $2     $2,977
                      ------         ---     -----           ---     ------

    (1)  For the quarter ended December 31, 2009, adjusted operating
         income excludes a $60 million non-cash impairment charge related to
         certain broadcast licenses held by a 32%-owned consolidated entity
         in the Media Networks segment. For the year ended December 31, 2009,
         adjusted operating income also excludes $33 million of severance
         expenses attributable to the Media Networks and Filmed Entertainment
         segments, which occurred in the second quarter of 2009.
    (2)  2008 adjusted operating income excludes $454 million, for the
         quarter and year ended December 31, 2008 of restructuring and other
         charges across all segments.  The charge principally relates to
         programming abandonments, severance, the write-down of film
         inventory and other charges.




SOURCE Viacom Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Viacom Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.