ViacomCBS Posts Q4 Gains

Revenues at ViacomCBS rose by 3 percent in the fourth quarter to $6.9 billion, delivering net earnings from continuing operations of $783 million.

“We started 2020 with clear goals: unlock the power of our combination, build robust operating momentum and accelerate our streaming strategy—and we delivered,” said Bob Bakish, president and CEO. “In Q4, despite the ongoing impacts of Covid-19, we finished the year with strong advertising and affiliate results that demonstrate the strength of our core businesses and achieved incredible growth across our linked streaming ecosystem, reaching nearly 30 million global subscribers and over 43 million Pluto TV global MAUs.”

Advertising revenue in the quarter rose by 4 percent to $3.1 billion, with domestic up 2 percent to $2.7 billion and international up 13 percent to $445 million. Affiliate revenues were up 13 percent to $2.4 billion, led by growth in streaming subscription revenue, higher reverse compensation and retransmission fees and expanded distribution. U.S. affiliate revenues were up 13 percent to $2.2 billion and international 8 percent to $171 million. Content licensing revenues, meanwhile, were down 3 percent to $1.2 billion and theatrical was down 97 percent to $4 million.

ViacomCBS released its financials ahead of an investor presentation showcasing the company’s free and pay streaming strategy, including the gains at Pluto and the lineup for Paramount+, which rolls out next week. In Q4, streaming and digital video revenue was up by 71 percent to $888 million (largely from the U.S.), with subscription revenues up 74 percent and ad revenues up 69 percent. As at the end of Q4, the company had 30 million global streaming subscribers, a 56-percent year-on-year increase. In the U.S., CBS All Access and Showtime OTT have 19.2 million subs. Meanwhile, Pluto TV’s global monthly active users (MAUs) rose to 43 million, an 80 percent year-on-year gain, with U.S. MAUs up to 30.1 million and international rising to 12.9 million.

The TV entertainment segment, which includes CBS, delivered stable revenues of $3.1 billion, with ad revenues down slightly to $1.6 billion, affiliate up 23 percent to $841 million and content licensing down 20 percent to $573 million due to Covid-19-related production delays.

At the cable networks—a segment that includes Showtime OTT and Pluto TV—revenues were up 11 percent to $3.4 billion, with ad and affiliate revenues both up 8 percent to $1.5 billion and $1.6 billion, respectively, while content licensing revenues were up 48 percent to $370 million.

Filmed entertainment revenues were down 3 percent to $514 million, as the massive drop in theatrical revenues was partially offset by a 14-percent boost in home entertainment to $176 million and a 39-percent gain in licensing to $304 million.