$VIAC (VIACOMCBS) operates as a mass media company worldwide. The company operates in four segments: Entertainment, Cable Networks, Publishing, and Local Media.
⚠ The company reported $1.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.30.
OVERVIEW OF Q2 REVENUE
◾ Affiliate revenue increased 2%, reflecting growth in station affiliation and retransmission fees, as well as subscription streaming revenue, which more than offset declines in pay-TV subscribers.
◾ Advertising revenue declined 27% year-over-year, driven by the adverse effects of COVID-19 on global advertising demand, the comparison against the broadcast of the national semifinals and championship games of the NCAA Tournament in the prior-year quarter, as well as the cancellation and postponement of professional golf tournaments.
◾ Domestic streaming and digital video revenue – which includes streaming subscription and digital video advertising revenue – rose to $489M, up 25% year-over-year, driven by 52% growth in streaming subscription revenue and robust growth in Pluto TV advertising revenue.
◾ Content licensing revenue was relatively flat, primarily reflecting the licensing of domestic streaming rights to South Park, offset by significant licensing activity in the year-ago quarter, as well as the timing of deliveries, which were affected by COVID-related production delays.
◾ Theatrical revenue was immaterial in the quarter due to the closure of movie theaters in response to COVID-19.
◾ Publishing revenue decreased 8%, mainly driven by lower print book sales as a result of the impact of COVID-19, partially offset by growth in sales of electronic and digital audiobooks.
Unlike other stocks, this stock started to recover its “pre-COVID” value much later, which may represent an excellent entry opportunity at this point where so many stocks are considered “overvalued”.
See Viacom Official Press Release for more information.