Viacom Posts Sharply Higher 1995 Operating Results, Reflecting Significant Contributions From All Business Segments

Business Wire, Feb 21, 1996

NEW YORK--(BUSINESS WIRE)--February 21, 1996--Viacom Posts Sharply Higher 1995 Operating Results, Reflecting Significant Contributions From All Business Segments

-- 1995 full year revenues increased 15% to $11.7 billion, full

year EBITDA rose 29% to $2.3 billion and full year earnings from

continuing operations increased 44% to $1.5 billion, versus 1994

pro forma results.

-- For the year, every business segment posted sharply higher

EBITDA and earnings from continuing operations in 1995 compared

with 1994 pro forma results, led by strong contributions from

Paramount, Blockbuster Video and MTV Networks.

-- In the fourth quarter, the Company reported revenues of $3.1

billion and EBITDA of $492 million, paced by increases at MTV

Networks and Simon & Schuster, and substantial contributions from

Blockbuster Video and Paramount.

New York, New York, February 21, 1996 -- Fueled by double-digit increases from nearly all of its operations in 1995, Viacom Inc. (Amex: VIA and VIAB) today reported sharply higher revenues, earnings from continuing operations and earnings from operations before depreciation and amortization (EBITDA). For the year ended December 31, 1995, Viacom posted revenues of $11.69 billion, an increase of 15% over 1994 pro forma revenues of $10.12 billion, earnings from continuing operations of $1.49 billion, a gain of 44% over 1994 pro forma earnings from continuing operations of $1.04 billion, and EBITDA of $2.31 billion, up 29% from 1994 pro forma EBITDA of $1.79 billion.

"Viacom's 1995 operating performance, which exceeded our ambitious goals, is a powerful indication of the extraordinary strength and vitality of our combined operations and clearly demonstrates the momentum we have built in our first full year following the merger of Viacom with Paramount and Blockbuster," said Sumner M. Redstone, Chairman and Chief Executive Officer of Viacom. "We delivered on our promises for the year, generating significant and sustainable cash flow growth across all of our business segments."

"Our goal as we look ahead," Mr. Redstone added, "is to continue our strong momentum in 1996 and beyond. MTV Networks will continue to extend its brands by adding new channels, extending international expansion and accelerating new product development. At Blockbuster, we will continue our aggressive store expansion program in the U.S. and abroad, building our market share worldwide in video sales as well as rentals. Paramount has regained momentum and is off to a strong start in 1996, benefiting from its leadership in television programming and a promising release schedule that includes Mission Impossible with Tom Cruise; Star Trek Generations II; Nickelodeons first family film, Harriet the Spy; and MTV Productions' Beavis & Butt-head. Simon & Schuster will remain a world-class competitor in traditional and emerging publishing formats and is set to exploit another exceptionally strong year in textbook sales.

"We also remain focused on growing our existing businesses, strengthening our capital structure and achieving investment grade status for our debt," he said.

For the year ended December 31, 1994, Viacom reported revenues of $7.36 billion, earnings from continuing operations of $608 million and EBITDA of $1.07 billion. Reported results for the full year are not comparable principally due to the 1994 acquisitions of Paramount Communications Inc. (Paramount) and Blockbuster Entertainment Corporation (Blockbuster). Operating results of Paramount are reflected beginning March 1, 1994, and operating results of Blockbuster were consolidated with Viacom beginning October 1, 1994. As a result, 1995 full year results are not comparable to actual results as reported for the corresponding 1994 periods.

For the three months ended December 31, 1995, Viacom reported revenues of $3.07 billion versus $2.78 billion in 1994, earnings from continuing operations of $280 million compared with $306 million in 1994 and EBITDA of $492 million versus $494 million in 1994.

Viacom reported net earnings attributable to common stock for the year ended December 31, 1995 of $163 million, or $.43 per common share, and a net loss for the fourth quarter of $11 million, or $.03 per common share. Net results for 1995 are not comparable to historical results for the same periods in 1994 because of the effects of several non-recurring events, including principally the sale of the Company's one-third interest in Lifetime Television in April 1994 for approximately $318 million; merger-related charges of $332 million recognized in the first quarter of 1994; as well as the timing of the major acquisitions and the related issuance of common and common share equivalents. Included in 1995 full year net earnings is a net equity loss of $49 million related to the Company's 49.9% interest in Discovery Zone. Net earnings for the full year also reflect increases in amortization of goodwill and interest expense related to the acquisitions in 1994. Viacom reported 1994 net earnings attributable to common stock of $14.6 million or $ .07 per common share. In the fourth quarter of 1994, Viacom reported a net loss attributable to common stock of $65.2 million or $ .18 per common share.