ViacomCBS Profit Down As Ad Revenues Decline

Total revenues at ViacomCBS fell by 6 percent in Q1 to $6.7 billion as ad revenues dropped by 19 percent.

Net earnings from continuing operations attributable to ViacomCBS plunged by 74 percent to $508 million.

Ad revenues across the organization were down 19 percent to $2.5 billion, with U.S. ad revenues down 20 percent to $2.2 billion and international down 12 percent to $255 million. Affiliate revenues edged up by 1 percent to $2.2 billion, with U.S. revenues up 3 percent to $2 billion but international down 12 percent to $151 million. Content licensing revenues gained 9 percent to $1.6 billion.

The company pointed to the success of its streaming business in the U.S., with subscription and digital ad revenues rising by 51 percent to $471 million across CBS All Access, Showtime OTT and Pluto TV.

By segment, TV entertainment (CBS Television, CBS News, CBS All Access, CBS Sports, CBS Television Stations and CBS Television Studios) saw revenues drop 13 percent to $2.9 billion, with ad revenues down 30 percent to $1.4 billion, affiliate revenues up 20 percent to $734 million and content licensing up 2 percent to $797 million.

At the cable networks (a segment that includes Telefe, Channel 5 and Network Ten), revenues slipped by 2 percent to $2.9 billion, with ad revenues flat at $1.1 billion, affiliate revenues down 6 percent to $1.5 billion and content licensing up 19 percent to $278 million.

Filmed entertainment delivered $811 million in revenues, an 11 percent gain, driven by home entertainment (up 13 percent to $174 million) and licensing (up 18 percent to $442 million) as theatrical slipped by 3 percent to $167 million.

Bob Bakish, president and CEO of the company, noted, “ViacomCBS delivered solid results in our first full quarter, including sequential improvement on key financial metrics, as well as clear operating momentum. In the wake of the COVID-19 pandemic, we also took decisive action to fortify our balance sheet, protect our employees and help communities in need. And through new creative strategies and production models, we continue to deliver must-watch content that big audiences love. Importantly, we are just beginning to tap into the potential of our combined assets, and our growing scale, audience reach and earnings power will become even more apparent as the market rebounds and we put the power of our portfolio behind our streaming strategy. I thank ViacomCBS employees around the world for their adaptive creativity and continued focus on serving our audiences, commercial partners and shareholders amid these unprecedented circumstances.”