We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ViacomCBS (VIAC) Q2 Earnings Top Estimates, Revenues Fall Y/Y
Read MoreHide Full Article
ViacomCBS’s second-quarter 2020 adjusted earnings of $1.25 per share beat the Zacks Consensus Estimate by 25.9%. The bottom line, however, declined 16% year over year.
Revenues of $6.28 billion beat the Zacks Consensus Estimate by 2.5% but fell 12% year over year.
Adjusted OIBDA increased 8% from the year-ago quarter to $1.69 billion.
Selling, general and administrative expenses decreased 10.9% year over year to $1.22 billion.
Advertising revenues of $1.93 billion dropped 27% year over year. While Domestic revenues were down 24%, International revenues deteriorated 43%.
The year-over-year decline was primarily attributed to negative impact of coronavirus on global advertising demand, tough comparison, and cancellation and postponement of professional golf tournaments.
However, Affiliate revenues of $2.19 billion climbed 2% year over year. Domestic revenues grew 2% while International revenues declined 5%.
Affiliate revenues benefited from growth in station affiliation and retransmission fees, as well as subscription-streaming revenues, which more than offset declines in pay-TV subscribers.
Domestic streaming and digital-video revenues increased 25% year over year to $489 million, driven by 52% growth in streaming-subscription revenues and robust growth in Pluto TV-advertising revenues. Domestic streaming subscribers reached 16.2 million, up 74% year over year.
Pluto TV’s domestic monthly active users (MAUs) were 26.5 million, up 61% year over year. Pluto TV entered 17 Latin American markets and achieved robust adoption. The platform’s total global MAUs reached 33 million.
In April, ViacomCBS inked a partnership with Verizon (VZ - Free Report) , which covers pay TV, connected television and mobile, including a significant expansion of Pluto TV’s footprint.
Content-licensing revenues of $1.90 billion were unchanged. Coronavirus-induced production delays hurt top-line growth.
Theatrical revenues of ViacomCBS were immaterial in the reported quarter due to the closure of movie theaters in response to coronavirus.
Other revenues fell 34% year over year to $42 million.
Segment Details
ViacomCBS’ TV Entertainment revenues declined 22% year over year to $2.29 billion due to negative impact of coronavirus on the advertising market and lower content-licensing revenues.
TV Entertainment’s adjusted OIBDA decreased 36% from the year-ago quarter to $392 million.
Cable Networks revenues of ViacomCBS inched up 2% year over year to $3.23 billion, driven by licensing of domestic streaming rights of South Park.
Cable Networks’ adjusted OIBDA increased 30% from the year-ago quarter to $1.29 billion, driven by lower programming costs primarily due to scheduling changes and the cancellation of events as a result of coronavirus. Lower advertising and promotion costs also benefited profitability.
ViacomCBS’ Filmed Entertainment revenues declined 26% year over year to $647 million. Home-entertainment revenues jumped 30%, driven by favorable mix oftitles in release, including Sonic the Hedgehog, and higher sales of catalog titles. Licensing revenues decreased 20% due to lower revenues fromlicensing of catalog titles.
Adjusted OIBDA was $116 million, up 22% year over year driven by lower distribution costs due to the absence of theatrical releases in the reported quarter, as well as the strong performance of Sonic the Hedgehog in the home-entertainment market.
Publishing revenues of ViacomCBS were down 8% year over year to $200 million, due to lower print-book sales negatively impacted by the coronavirus outbreak.
Adjusted OIBDA increased 9% year over year to $38 million in the reported quarter.
Balance Sheet
As of Jun 30, 2020, ViacomCBS had cash and cash equivalents of $2.29 billion compared with $589 million as of Mar 31, 2020.
Total debt as of Jun 30, 2020 was $20.07 billion compared with $18.54 billion as of Mar 31, 2020.
In the second quarter, ViacomCBS raised $4.5 billion of capital and used the proceeds to redeem $2.8 billion of near-term maturities, including a $340 million redemption that settled on Jul 10, 2020.
Cash flow from operating activities was $795 million compared with $356 million in the previous quarter and $260 million in the year-ago quarter.
Free cash flow was $714 million compared with $305 million in the previous quarter and $862 million in the year-ago quarter.
Post Q2 Developments
In July, ViacomCBS announced a multi-year renewal with DISH Network and Sling TV. The company also continued to benefit from strong reverse compensation and recently signed agreements with Sinclair (SBGI - Free Report) and Cox.
Moreover, in July, ViacomCBS unveiled its plan to transform CBS All Access into a rebranded super service. This Zacks Rank #3 (Hold) company remains on track to relaunch this differentiated streaming service in early 2021. 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 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
ViacomCBS (VIAC) Q2 Earnings Top Estimates, Revenues Fall Y/Y
ViacomCBS’s second-quarter 2020 adjusted earnings of $1.25 per share beat the Zacks Consensus Estimate by 25.9%. The bottom line, however, declined 16% year over year.
Revenues of $6.28 billion beat the Zacks Consensus Estimate by 2.5% but fell 12% year over year.
Adjusted OIBDA increased 8% from the year-ago quarter to $1.69 billion.
Selling, general and administrative expenses decreased 10.9% year over year to $1.22 billion.
Viacom CBS Inc. Price, Consensus and EPS Surprise
ViacomCBS Inc. price-consensus-eps-surprise-chart | ViacomCBS Inc. Quote
Revenues by Type
Advertising revenues of $1.93 billion dropped 27% year over year. While Domestic revenues were down 24%, International revenues deteriorated 43%.
The year-over-year decline was primarily attributed to negative impact of coronavirus on global advertising demand, tough comparison, and cancellation and postponement of professional golf tournaments.
However, Affiliate revenues of $2.19 billion climbed 2% year over year. Domestic revenues grew 2% while International revenues declined 5%.
Affiliate revenues benefited from growth in station affiliation and retransmission fees, as well as subscription-streaming revenues, which more than offset declines in pay-TV subscribers.
Domestic streaming and digital-video revenues increased 25% year over year to $489 million, driven by 52% growth in streaming-subscription revenues and robust growth in Pluto TV-advertising revenues. Domestic streaming subscribers reached 16.2 million, up 74% year over year.
Pluto TV’s domestic monthly active users (MAUs) were 26.5 million, up 61% year over year. Pluto TV entered 17 Latin American markets and achieved robust adoption. The platform’s total global MAUs reached 33 million.
In April, ViacomCBS inked a partnership with Verizon (VZ - Free Report) , which covers pay TV, connected television and mobile, including a significant expansion of Pluto TV’s footprint.
Content-licensing revenues of $1.90 billion were unchanged. Coronavirus-induced production delays hurt top-line growth.
Theatrical revenues of ViacomCBS were immaterial in the reported quarter due to the closure of movie theaters in response to coronavirus.
Other revenues fell 34% year over year to $42 million.
Segment Details
ViacomCBS’ TV Entertainment revenues declined 22% year over year to $2.29 billion due to negative impact of coronavirus on the advertising market and lower content-licensing revenues.
TV Entertainment’s adjusted OIBDA decreased 36% from the year-ago quarter to $392 million.
Cable Networks revenues of ViacomCBS inched up 2% year over year to $3.23 billion, driven by licensing of domestic streaming rights of South Park.
Cable Networks’ adjusted OIBDA increased 30% from the year-ago quarter to $1.29 billion, driven by lower programming costs primarily due to scheduling changes and the cancellation of events as a result of coronavirus. Lower advertising and promotion costs also benefited profitability.
ViacomCBS’ Filmed Entertainment revenues declined 26% year over year to $647 million. Home-entertainment revenues jumped 30%, driven by favorable mix oftitles in release, including Sonic the Hedgehog, and higher sales of catalog titles. Licensing revenues decreased 20% due to lower revenues fromlicensing of catalog titles.
Adjusted OIBDA was $116 million, up 22% year over year driven by lower distribution costs due to the absence of theatrical releases in the reported quarter, as well as the strong performance of Sonic the Hedgehog in the home-entertainment market.
Publishing revenues of ViacomCBS were down 8% year over year to $200 million, due to lower print-book sales negatively impacted by the coronavirus outbreak.
Adjusted OIBDA increased 9% year over year to $38 million in the reported quarter.
Balance Sheet
As of Jun 30, 2020, ViacomCBS had cash and cash equivalents of $2.29 billion compared with $589 million as of Mar 31, 2020.
Total debt as of Jun 30, 2020 was $20.07 billion compared with $18.54 billion as of Mar 31, 2020.
In the second quarter, ViacomCBS raised $4.5 billion of capital and used the proceeds to redeem $2.8 billion of near-term maturities, including a $340 million redemption that settled on Jul 10, 2020.
Cash flow from operating activities was $795 million compared with $356 million in the previous quarter and $260 million in the year-ago quarter.
Free cash flow was $714 million compared with $305 million in the previous quarter and $862 million in the year-ago quarter.
Post Q2 Developments
In July, ViacomCBS announced a multi-year renewal with DISH Network and Sling TV. The company also continued to benefit from strong reverse compensation and recently signed agreements with Sinclair (SBGI - Free Report) and Cox.
Moreover, in July, ViacomCBS unveiled its plan to transform CBS All Access into a rebranded super service. This Zacks Rank #3 (Hold) company remains on track to relaunch this differentiated streaming service in early 2021. 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 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>