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ViacomCBS (VIAC) Q4 Earnings Top Estimates, Revenues Rise Y/Y
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ViacomCBS’ fourth-quarter 2020 adjusted earnings of $1.04 per share beat the Zacks Consensus Estimate by 3%. The bottom line increased 7.2% year over year.
Revenues of $6.87 billion missed the Zacks Consensus Estimate by 1.22% but increased 3.3% year over year.
Adjusted OIBDA increased 5% from the year-ago quarter to $1.18 billion.
Selling, general and administrative expenses increased 4.8% year over year to $1.51 billion.
Advertising revenues of $3.14 billion increased 4% year over year, reflecting higher streaming advertising and political advertising sales. While Domestic revenues were up 2%, International revenues increased 13%.
Affiliate revenues of $2.41 billion climbed 13% year over year. Domestic and international revenues grew 13% and 8%, respectively.
Affiliate revenues benefited from strong growth in streaming subscription revenues, higher reverse compensation and retransmission fees, as well as expanded distribution.
Global streaming & digital video revenues increased 71% year over year to $888 million, driven by 74% growth in streaming subscription revenues and 69% streaming advertising revenue growth. Global streaming subscribers rose to nearly 30 million, up 56% year over year.
Domestic streaming and digital-video revenues increased 72% year over year to $845 million. Domestic streaming subscribers reached 19.2 million, up 71% year over year.
CBS All Access’ momentum was driven by demand for sports content, including the NFL, UEFA and SEC, as well as original programming, including Star Trek: Discovery and The Stand, and content from ViacomCBS cable brands.
SHOWTIME OTT benefited from strong demand for original programming, including the premieres of Shameless and the limited series Your Honor, as well as theatricals.
Pluto TV’s domestic monthly active users (MAUs) were 30.1 million, up 34% year over year. The platform’s total global MAUs reached 43 million. Internationally, Pluto TV MAUs grew to 12.9M, including expanding in Spain and Brazil during the quarter.
During the quarter, Pluto TV signed new distribution agreements with Samsung and Google.
Meanwhile, content-licensing revenues of $1.24 billion declined 3% year over year, reflecting lower volume of licensing compared to the prior-year quarter and the adverse impacts of COVID-19.
Theatrical revenues of ViacomCBS declined 97% year over year to $4 million in the reported quarter due to the closure or reduction in capacity of movie theaters in response to coronavirus.
Other revenues fell 17% year over year to $69 million.
Segment Details
ViacomCBS’ TV Entertainment revenues remained flat year over year at $3.11 billion, which benefited from strong affiliate revenue growth, offset by lower content licensing revenues.
TV Entertainment’s adjusted OIBDA decreased 12% from the year-ago quarter to $549 million due to increased expenses to support the growth and expansion of CBS All Access.
Meanwhile, Cable Networks revenues of ViacomCBS increased 11% year over year to $3.43 billion driven by growth in content licensing, affiliate and advertising revenues.
In the fourth quarter, ViacomCBS owned most of the top 30 cable networks popular among viewers in the 18-49 years age group and 9 of the top 10 original series with kids aged 2-11 years. Showtime also had two of the top four scripted shows on premium cable in the quarter.
Cable Networks’ adjusted OIBDA moved up 1% from the year-ago quarter to $801 million, as a result of the increase in revenues and savings from restructuring activities, which was mostly offset by increased expenses for programming, participations, advertising and promotions to support the growth of the company’s streaming services.
Meanwhile, this Zacks Rank #4 (Sell) company’s Filmed Entertainment revenues declined 3% year over year to $514 million, reflecting the decline in theatrical revenues, partially offset by growth in licensing and home entertainment revenues.
Licensing revenues increased 39% year over year to $304 million attributed to higher licensing of catalog titles.
Adjusted OIBDA was $18 million against loss of $119M in the prior-year quarter as lower revenues were more than offset by lower distribution costs from fewer theatrical releases.
Balance Sheet
As of Dec 31, 2020, ViacomCBS had cash and cash equivalents of $2.98 billion compared with $3.08 billion as of Sep 30, 2020. ViacomCBS had committed $3.5 billion revolving credit facility that remains undrawn.
Total debt as of Dec 31, 2020 was $19.73 billion compared with $19.72 billion as of Sep 30, 2020.
Cash flow used in operating activities was $339 million compared with $1.39 billion provided in the previous quarter and $530 million used in the year-ago quarter.
Negative free cash flow was $453 billion compared with positive free cash flow $1.31 billion in the previous quarter and negative free cash flow of $629 million in the year-ago quarter.
Q4 Developments
During the fourth quarter, ViacomCBS announced that it has entered into a definitive agreement to sell its publishing business, Simon & Schuster to Penguin Random House LLC, a wholly owned subsidiary of Bertelsmann SE & Co. KGaA, for $2.17 billion in cash. As a result, Simon & Schuster has been stated as a discontinued operation for all periods presented.
Post Q4 Developments
On Jan 19, 2021 ViacomCBS announced that the company will launch its highly anticipated streaming service, Paramount+, in the United States on Mar 4.
Additionally, ViacomCBS announced that the company delivered the first-ever addressable impressions within a live national broadcast via MVPD set-top box. This was in in partnership with DISH Network owned DISH Media.
Moreover, the company entered into a new multi-year deal with Sinclair Broadcast Group (SBGI - Free Report) to add 13 CBS network affiliations for Sinclair stations.
Further, ViacomCBS entered into a new distribution agreement that adds more content from ViacomCBS’ leading portfolio of news, entertainment and sports networks to Disney (DIS - Free Report) owned Hulu’s live TV subscription streaming service, Hulu + Live TV
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
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ViacomCBS (VIAC) Q4 Earnings Top Estimates, Revenues Rise Y/Y
ViacomCBS’ fourth-quarter 2020 adjusted earnings of $1.04 per share beat the Zacks Consensus Estimate by 3%. The bottom line increased 7.2% year over year.
Revenues of $6.87 billion missed the Zacks Consensus Estimate by 1.22% but increased 3.3% year over year.
Adjusted OIBDA increased 5% from the year-ago quarter to $1.18 billion.
Selling, general and administrative expenses increased 4.8% year over year to $1.51 billion.
ViacomCBS Inc. Price, Consensus and EPS Surprise
ViacomCBS Inc. price-consensus-eps-surprise-chart | ViacomCBS Inc. Quote
Revenues by Type
Advertising revenues of $3.14 billion increased 4% year over year, reflecting higher streaming advertising and political advertising sales. While Domestic revenues were up 2%, International revenues increased 13%.
Affiliate revenues of $2.41 billion climbed 13% year over year. Domestic and international revenues grew 13% and 8%, respectively.
Affiliate revenues benefited from strong growth in streaming subscription revenues, higher reverse compensation and retransmission fees, as well as expanded distribution.
Global streaming & digital video revenues increased 71% year over year to $888 million, driven by 74% growth in streaming subscription revenues and 69% streaming advertising revenue growth. Global streaming subscribers rose to nearly 30 million, up 56% year over year.
Domestic streaming and digital-video revenues increased 72% year over year to $845 million. Domestic streaming subscribers reached 19.2 million, up 71% year over year.
CBS All Access’ momentum was driven by demand for sports content, including the NFL, UEFA and SEC, as well as original programming, including Star Trek: Discovery and The Stand, and content from ViacomCBS cable brands.
SHOWTIME OTT benefited from strong demand for original programming, including the premieres of Shameless and the limited series Your Honor, as well as theatricals.
Pluto TV’s domestic monthly active users (MAUs) were 30.1 million, up 34% year over year. The platform’s total global MAUs reached 43 million. Internationally, Pluto TV MAUs grew to 12.9M, including expanding in Spain and Brazil during the quarter.
During the quarter, Pluto TV signed new distribution agreements with Samsung and Google.
Meanwhile, content-licensing revenues of $1.24 billion declined 3% year over year, reflecting lower volume of licensing compared to the prior-year quarter and the adverse impacts of COVID-19.
Theatrical revenues of ViacomCBS declined 97% year over year to $4 million in the reported quarter due to the closure or reduction in capacity of movie theaters in response to coronavirus.
Other revenues fell 17% year over year to $69 million.
Segment Details
ViacomCBS’ TV Entertainment revenues remained flat year over year at $3.11 billion, which benefited from strong affiliate revenue growth, offset by lower content licensing revenues.
TV Entertainment’s adjusted OIBDA decreased 12% from the year-ago quarter to $549 million due to increased expenses to support the growth and expansion of CBS All Access.
Meanwhile, Cable Networks revenues of ViacomCBS increased 11% year over year to $3.43 billion driven by growth in content licensing, affiliate and advertising revenues.
In the fourth quarter, ViacomCBS owned most of the top 30 cable networks popular among viewers in the 18-49 years age group and 9 of the top 10 original series with kids aged 2-11 years. Showtime also had two of the top four scripted shows on premium cable in the quarter.
Cable Networks’ adjusted OIBDA moved up 1% from the year-ago quarter to $801 million, as a result of the increase in revenues and savings from restructuring activities, which was mostly offset by increased expenses for programming, participations, advertising and promotions to support the growth of the company’s streaming services.
Meanwhile, this Zacks Rank #4 (Sell) company’s Filmed Entertainment revenues declined 3% year over year to $514 million, reflecting the decline in theatrical revenues, partially offset by growth in licensing and home entertainment revenues.
Licensing revenues increased 39% year over year to $304 million attributed to higher licensing of catalog titles.
Adjusted OIBDA was $18 million against loss of $119M in the prior-year quarter as lower revenues were more than offset by lower distribution costs from fewer theatrical releases.
Balance Sheet
As of Dec 31, 2020, ViacomCBS had cash and cash equivalents of $2.98 billion compared with $3.08 billion as of Sep 30, 2020. ViacomCBS had committed $3.5 billion revolving credit facility that remains undrawn.
Total debt as of Dec 31, 2020 was $19.73 billion compared with $19.72 billion as of Sep 30, 2020.
Cash flow used in operating activities was $339 million compared with $1.39 billion provided in the previous quarter and $530 million used in the year-ago quarter.
Negative free cash flow was $453 billion compared with positive free cash flow $1.31 billion in the previous quarter and negative free cash flow of $629 million in the year-ago quarter.
Q4 Developments
During the fourth quarter, ViacomCBS announced that it has entered into a definitive agreement to sell its publishing business, Simon & Schuster to Penguin Random House LLC, a wholly owned subsidiary of Bertelsmann SE & Co. KGaA, for $2.17 billion in cash. As a result, Simon & Schuster has been stated as a discontinued operation for all periods presented.
Post Q4 Developments
On Jan 19, 2021 ViacomCBS announced that the company will launch its highly anticipated streaming service, Paramount+, in the United States on Mar 4.
Additionally, ViacomCBS announced that the company delivered the first-ever addressable impressions within a live national broadcast via MVPD set-top box. This was in in partnership with DISH Network owned DISH Media.
Moreover, the company entered into a new multi-year deal with Sinclair Broadcast Group (SBGI - Free Report) to add 13 CBS network affiliations for Sinclair stations.
Further, ViacomCBS entered into a new distribution agreement that adds more content from ViacomCBS’ leading portfolio of news, entertainment and sports networks to Disney (DIS - Free Report) owned Hulu’s live TV subscription streaming service, Hulu + Live TV
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>