ViacomCBS Reports Q2 2021 Earnings Results

Rhea-AI Summary

ViacomCBS reported strong financial results for Q2 2021, with revenue increasing 8% to $6.564B and operating income at $1.226B. Net earnings surged 120% to $995M, with diluted EPS rising 105% to $1.50. Notably, streaming revenue soared 92% due to a 6.5M subscriber boost, reaching over 42M. Advertising and affiliate revenue also grew significantly by 24% and 9% respectively. Despite these successes, adjusted OIBDA declined 25%. The company maintains a solid cash position with $5.4B on hand and an undrawn $3.5B credit facility, indicating strong liquidity.

Positive

• Revenue increased 8% year-over-year, reaching $6.564B.
• Net earnings surged 120% to $995M.
• Diluted EPS rose 105% to $1.50.
• Streaming revenue grew 92% year-over-year, driven by strong subscriber growth.
• Paramount+ added 6.5M subscribers, totaling over 42M globally.

Negative

• Adjusted OIBDA decreased 25% year-over-year to $1.240B.
• Operating income fell 2% compared to the previous year.

ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today reported financial results for the quarter ended June 30, 2021.

STATEMENT FROM BOB BAKISH, PRESIDENT & CEO

“In a quarter of strong business performance, including growth in advertising and affiliate, streaming was a standout. We continued to accelerate our global streaming momentum and delivered phenomenal results across our flagship streaming services. For the second consecutive quarter, Paramount+ fueled more than 6 million additions to our global streaming subscription base, which now reaches over 42 million. This growth was driven by the power of the service’s differentiated content strategy and expanding content slate. Looking ahead, we're excited about our opportunity to build on this momentum, as we scale Paramount+'s content offerings across genres and expand our reach with global audiences.”

Q2 2021 RESULTS*
$ IN MILLIONS, EXCEPT PER SHARE AMOUNTS
		Three Months Ended June 30											Six Months Ended June 30
GAAP		2021				2020				B/(W)%			2021				2020				B/(W)%
Revenue		$	6,564			$	6,075			8	%		$	13,976			$	12,574			11	%
Operating income		$	1,226			$	1,251			(2	)%		$	2,754			$	2,153			28	%
Net earnings from continuing operations attributable to ViacomCBS		$	995			$	453			120	%		$	1,894			$	954			99	%
Diluted EPS from continuing operations attributable to ViacomCBS		$	1.5			$	0.73			105	%		$	2.93			$	1.55			89	%
Non-GAAP†
Adjusted OIBDA		$	1,240			$	1,652			(25	)%		$	2,867			$	2,897			(1	)%
Adjusted net earnings from continuing operations attributable to ViacomCBS		$	640			$	744			(14	)%		$	1,601			$	1,434			12	%
Adjusted diluted EPS from continuing operations attributable to ViacomCBS		$	0.97			$	1.21			(20	)%		$	2.47			$	2.32			6	%
† Non-GAAP measures are detailed in the Supplemental Disclosures at the end of this release.
*During the fourth quarter of 2020, ViacomCBS entered into an agreement to sell Simon & Schuster, which was previously reported as the Publishing segment. Simon & Schuster has been presented as a discontinued operation in the company’s consolidated financial statements for all periods.

OVERVIEW OF Q2 REVENUE

REVENUE BY TYPE

• Advertising revenue grew 24% year-over-year, driven by CBS’ broadcasts of 2021 sporting events for which there were no comparable broadcasts in the prior-year period as a result of COVID-19, and an improved advertising market.
• Affiliate revenue increased 9% year-over-year, reflecting expanded distribution and higher reverse compensation and retransmission fees.
• Streaming revenue rose 92% year-over-year:
  • Streaming advertising revenue more than doubled, growing 102% year-over-year, driven by growth in advertising on Pluto TV, Paramount+ and other digital video platforms.
  • Streaming subscription revenue grew 82% year-over-year, reflecting strong subscriber growth across the company’s subscription services.
• Theatrical revenue reflects the release of A Quiet Place Part II in the second quarter of 2021, while there were no releases in the prior-year period as a result of COVID-19.
• Licensing and other revenue decreased 36% year-over-year, primarily reflecting the licensing of the domestic streaming rights to South Park in the prior year and the impact on film licensing from the absence of theatrical releases throughout most of 2020 and the first quarter of 2021 due to COVID-19.

$ IN MILLIONS		Three Months Ended June 30													Six Months Ended June 30
		2021			2020			$ B/(W) %							2021			2020			$ B/(W) %
Advertising*		$	2,097		$	1,686		$	411			24	%		$	4,778		$	3,905		$	873			22	%
Affiliate*		2,107			1,929			178				9			4,182			3,897			285				7
Streaming		983			513			470				92			1,799			1,007			792				79
Advertising		502			248			254				102			930			513			417				81
Subscription		481			265			216				82			869			494			375				76
Theatrical		134			3			131				n/m			135			170			(35		)		(21	)
Licensing and other		1,243			1,944			(701		)		(36	)		3,082			3,595			(513		)		(14	)
Total Revenue		$	6,564		$	6,075		$	489			8	%		$	13,976		$	12,574		$	1,402			11	%
*Excludes streaming revenue n/m = not meaningful

GLOBAL STREAMING HIGHLIGHTS

• Global streaming subscribers rose to more than 42M, adding 6.5M subscribers in the quarter.
  • Subscriber additions in the quarter were led by Paramount+.
    • Domestically, Paramount+ originals drove strong subscriber sign-ups and engagement.
      • The top drivers of sign-ups included the new iCarly series, Infinite, UEFA Champions League, The Challenge: All Stars and Why Women Kill.
      • Engagement reached an all-time high in the quarter, driven by Infinite, SpongeBob SquarePants, the new iCarly series, NCIS and The SpongeBob Movie: Sponge on the Run.
      • Total viewing hours and watch time per active subscriber grew quarter-over-quarter.
    • Internationally, Paramount+ launches to date have had strong momentum, led by its progress in Latin America.
    • Paramount+ to launch in Australia and New Zealand this August and in key European markets, including the UK, Ireland, Italy, Germany, Switzerland and Austria in 2022 as part of new Sky partnership.
  • SHOWTIME OTT delivered strong growth in sign-ups and engagement, driven by originals, including The Chi, Shameless and City on a Hill.
• Global expansion and domestic growth helped global Pluto TV MAUs exceed 52M in the quarter and revenue surge 169% year-over-year, more than doubling for the fourth quarter in a row.
  • Domestic watch-time per user grew 45% year-over-year.

REPORTING SEGMENTS

TV ENTERTAINMENT

• In Q2, CBS was the most-watched network in Prime, Daytime and Late Night and claimed the quarter’s top broadcast series, top 3 dramas, top 6 comedies and top news magazine.
• Revenue grew 23% year-over-year, reflecting growth across all revenue streams.
  • Advertising revenue increased 24% year-over-year, reflecting CBS’ broadcast of the national semi-finals and championship games of the NCAA Tournament and professional golf tournaments, as well as an improved advertising market, partially offset by lower ratings.
  • Affiliate revenue grew 10% year-over-year, driven by growth in reverse compensation and retransmission fee revenue.
  • Streaming revenue rose 81% year-over-year, reflecting subscriber growth at Paramount+, as well as advertising growth from Paramount+ and other digital video platforms.
  • Licensing and other revenue increased 16% year-over-year, primarily driven by a higher volume of programming licensed internationally and produced for third-party broadcasters.
• Adjusted OIBDA decreased 45% year-over-year, reflecting the company’s increased investment in Paramount+.

$ IN MILLIONS		Three Months Ended June 30															Six Months Ended June 30
		2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue		$	2,809			$	2,287			$	522			23	%		$	6,320			$	5,234			$	1,086			21	%
Advertising*		1,088				880				208				24			2,895				2,168				727				34
Affiliate*		691				629				62				10			1,384				1,252				132				11
Streaming		350				193				157				81			672				397				275				69
Licensing and other		680				585				95				16			1,369				1,417				(48		)		(3	)
Expenses		2,593				1,895				(698		)		(37	)		5,655				4,269				(1,386		)		(32	)
Adjusted OIBDA		$	216			$	392			$	(176	)		(45	)%		$	665			$	965			$	(300	)		(31	)%
*Excludes streaming revenue

CABLE NETWORKS

• In Q2, ViacomCBS had the most programs among the top 25 original cable series with P18-34 and P2-11 than any other cable family.
• Revenue increased 8% year-over-year, primarily driven by higher streaming, advertising and affiliate revenue, partially offset by lower licensing revenue.
  • Advertising revenue increased 24% year-over-year, largely driven by an improved advertising market and a 4-percentage point favorable impact of foreign exchange rate changes, partially offset by lower ratings.
  • Affiliate revenue grew 9% year-over-year, reflecting expanded vMVPD distribution and rate increases, partially offset by subscriber declines.
  • Streaming revenue increased 98% year-over-year, largely fueled by advertising revenue growth from Pluto TV, as well as growth in subscribers for subscription streaming services, including SHOWTIME OTT and BET+.
  • Licensing and other revenue decreased 48% year-over-year, primarily reflecting the licensing of the domestic streaming rights to South Park in the prior-year quarter, partially offset by revenue from the licensing of programming to Paramount+.
• Adjusted OIBDA declined 12% year-over-year, reflecting the benefit to 2020 from the domestic licensing of South Park and an increased investment in content, partially offset by the above-mentioned revenue increases.

$ IN MILLIONS		Three Months Ended June 30															Six Months Ended June 30
		2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue		$	3,475			$	3,232			$	243			8	%		$	6,734			$	6,090			$	644			11	%
Advertising*		1,011				815				196				24			1,889				1,760				129				7
Affiliate*		1,416				1,300				116				9			2,798				2,645				153				6
Streaming		633				320				313				98			1,127				610				517				85
Licensing and other		415				797				(382		)		(48	)		920				1,075				(155		)		(14	)
Expenses		2,350				1,947				(403		)		(21	)		4,425				4,011				(414		)		(10	)
Adjusted OIBDA		$	1,125			$	1,285			$	(160	)		(12	)%		$	2,309			$	2,079			$	230			11	%
*Excludes streaming revenue

FILMED ENTERTAINMENT

• Revenue grew 3% year-over-year, primarily driven by current quarter theatrical releases, partially offset by lower licensing revenue.
  • Theatrical revenue reflects the release of A Quiet Place Part II.
  • Licensing and other revenue decreased 17% year-over-year because of lower home entertainment revenue as a result of the absence of theatrical releases due to COVID-19.
• Adjusted OIBDA declined 38% year-over-year, reflecting distribution costs associated with current quarter theatrical releases and other anticipated releases later in 2021.

$ IN MILLIONS		Three Months Ended June 30															Six Months Ended June 30
		2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue		$	667			$	647			$	20			3	%		$	1,664			$	1,458			$	206			14	%
Theatrical		134				3				131				n/m			135				170				(35		)		(21	)
Licensing and other		533				644				(111		)		(17	)		1,529				1,288				241				19
Expenses		595				531				(64		)		(12	)		1,388				1,315				(73		)		(6	)
Adjusted OIBDA		$	72			$	116			$	(44	)		(38	)%		$	276			$	143			$	133			93	%
n/m = not meaningful

BALANCE SHEET & LIQUIDITY

• As of June 30, 2021, the company had $5.4B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.

ABOUT VIACOMCBS

ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution and advertising solutions for partners on five continents.

For more information about ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.

VIAC-IR

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This communication contains both historical and forward-looking statements, including statements related to our future results and performance. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “may,” “could,” “estimate” or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: changes in consumer behavior, as well as evolving technologies, distribution platforms and packaging; the impact on our advertising revenues of changes in consumers’ content viewership, deficiencies in audience measurement and advertising market conditions; our ability to maintain attractive brands and our reputation, and to offer popular programming and other content; increased costs for programming, films and other rights; competition for content, audiences, advertising and distribution; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and programming; the risks and costs associated with the integration of the CBS Corporation and Viacom Inc. businesses and investments in new businesses, products, services and technologies, including our streaming initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of COVID-19 (and other widespread health emergencies or pandemics) and measures taken in response thereto; domestic and global political, economic and/or regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of key talent and strikes and other union activity; potential conflicts of interest arising from our ownership structure with a controlling stockholder; and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

VIACOMCBS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Revenues		$	6,564			$	6,075			$	13,976			$	12,574
Costs and expenses:
Operating		3,865				3,361				8,228				7,317
Selling, general and administrative		1,459				1,183				2,881				2,481
Depreciation and amortization		95				122				194				234
Restructuring and other corporate matters		35				158				35				389
Total costs and expenses		5,454				4,824				11,338				10,421
Net gain on sales		116				—				116				—
Operating income		1,226				1,251				2,754				2,153
Interest expense		(243		)		(263		)		(502		)		(504		)
Interest income		13				11				26				25
Net gains from investments		32				32				52				32
Loss on extinguishment of debt		—				(103		)		(128		)		(103		)
Other items, net		(10		)		(26		)		(29		)		(54		)
Earnings from continuing operations before income taxes and equity in loss of investee companies		1,018				902				2,173				1,549
(Provision) benefit for income taxes		34				(192		)		(192		)		(326		)
Equity in loss of investee companies, net of tax		(44		)		(12		)		(62		)		(21		)
Net earnings from continuing operations		1,008				698				1,919				1,202
Net earnings from discontinued operations, net of tax		41				28				53				43
Net earnings (ViacomCBS and noncontrolling interests)		1,049				726				1,972				1,245
Net earnings attributable to noncontrolling interests		(13		)		(245		)		(25		)		(248		)
Net earnings attributable to ViacomCBS		$	1,036			$	481			$	1,947			$	997
Amounts attributable to ViacomCBS:
Net earnings from continuing operations		$	995			$	453			$	1,894			$	954
Net earnings from discontinued operations, net of tax		41				28				53				43
Net earnings attributable to ViacomCBS		$	1,036			$	481			$	1,947			$	997
Basic net earnings per common share attributable to ViacomCBS:
Net earnings from continuing operations		$	1.52			$	.74			$	2.96			$	1.55
Net earnings from discontinued operations		$	.06			$	.05			$	.08			$	.07
Net earnings		$	1.58			$	.78			$	3.05			$	1.62
Diluted net earnings per common share attributable to ViacomCBS:
Net earnings from continuing operations		$	1.50			$	.73			$	2.93			$	1.55
Net earnings from discontinued operations		$	.06			$	.05			$	.08			$	.07
Net earnings		$	1.56			$	.78			$	3.01			$	1.62
Weighted average number of common shares outstanding:
Basic		646				615				634				615
Diluted		662				617				647				617

VIACOMCBS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions, except per share amounts)
		At				At
		June 30, 2021				December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	5,375			$	2,984
Receivables, net		6,824				7,017
Programming and other inventory		1,419				1,757
Prepaid expenses and other current assets		1,089				1,391
Current assets of discontinued operations		547				630
Total current assets		15,254				13,779
Property and equipment, net		1,979				1,994
Programming and other inventory		11,421				10,363
Goodwill		16,601				16,612
Intangible assets, net		2,805				2,826
Operating lease assets		1,440				1,602
Deferred income tax assets, net		1,235				993
Other assets		3,658				3,657
Assets held for sale		—				28
Assets of discontinued operations		811				809
Total Assets		$	55,204			$	52,663
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	602			$	571
Accrued expenses		1,828				1,714
Participants’ share and royalties payable		2,176				2,005
Accrued programming and production costs		1,168				1,141
Deferred revenues		1,104				978
Debt		17				16
Other current liabilities		1,230				1,391
Current liabilities of discontinued operations		461				480
Total current liabilities		8,586				8,296
Long-term debt		17,703				19,717
Participants’ share and royalties payable		1,326				1,317
Pension and postretirement benefit obligations		2,025				2,098
Deferred income tax liabilities, net		888				778
Operating lease liabilities		1,472				1,583
Program rights obligations		188				243
Other liabilities		1,960				2,158
Liabilities of discontinued operations		210				220
Redeemable noncontrolling interest		190				197
Commitments and contingencies
ViacomCBS stockholders’ equity:
5.75% Series A Mandatory Convertible Preferred Stock, par value $.001 per share; 25 shares authorized and 10 shares issued (2021)		—				—
Class A Common Stock, par value $.001 per share; 55 shares authorized; 41 (2021) and 52 (2020) shares issued		—				—
Class B Common Stock, par value $.001 per share; 5,000 shares authorized; 1,108 (2021) and 1,068 (2020) shares issued		1				1
Additional paid-in capital		32,901				29,785
Treasury stock, at cost; 503 (2021 and 2020) Class B shares		(22,958		)		(22,958		)
Retained earnings		12,007				10,375
Accumulated other comprehensive loss		(1,853		)		(1,832		)
Total ViacomCBS stockholders’ equity		20,098				15,371
Noncontrolling interests		558				685
Total Equity		20,656				16,056
Total Liabilities and Equity		$	55,204			$	52,663

VIACOMCBS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
		Six Months Ended
		June 30,
		2021				2020
Operating Activities:
Net earnings (ViacomCBS and noncontrolling interests)		$	1,972			$	1,245
Less: Net earnings from discontinued operations, net of tax		53				43
Net earnings from continuing operations		1,919				1,202
Adjustments to reconcile net earnings from continuing operations to net cash flow provided by operating activities:
Depreciation and amortization		194				234
Deferred tax (benefit) provision		(110		)		227
Stock-based compensation		101				143
Net gain on sales		(116		)		—
Gains from investments		(52		)		(32		)
Loss on extinguishment of debt		128				103
Equity in loss of investee companies, net of tax and distributions		62				22
Change in assets and liabilities		(424		)		(741		)
Net cash flow provided by operating activities from continuing operations		1,702				1,158
Net cash flow provided by (used for) operating activities from discontinued operations		89				(7		)
Net cash flow provided by operating activities		1,791				1,151
Investing Activities:
Investments		(114		)		(60		)
Capital expenditures		(138		)		(131		)
Acquisitions, net of cash acquired		—				(141		)
Proceeds from dispositions		408				146
Other investing activities		(25		)		—
Net cash flow provided by (used for) investing activities from continuing operations		131				(186		)
Net cash flow used for investing activities from discontinued operations		(2		)		(1		)
Net cash flow provided by (used for) investing activities		129				(187		)
Financing Activities:
Repayments of short-term debt borrowings, net		—				(698		)
Proceeds from issuance of long-term debt		—				4,370
Repayment of long-term debt		(2,200		)		(2,535		)
Dividends paid on common stock		(302		)		(301		)
Proceeds from issuance of preferred stock		983				—
Proceeds from issuance of common stock		1,672				—
Purchase of Company common stock		—				(58		)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation		(49		)		(59		)
Proceeds from exercise of stock options		408				—
Other financing activities		(161		)		(70		)
Net cash flow provided by financing activities		351				649
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(8		)		(17		)
Net increase in cash, cash equivalents and restricted cash		2,263				1,596
Cash, cash equivalents and restricted cash at beginning of period (includes $135 (2021) and $202 (2020) of restricted cash)		3,119				834
Cash, cash equivalents and restricted cash at end of period (includes $7 (2021) and $142 (2020) of restricted cash)		$	5,382			$	2,430

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES
(Unaudited; in millions, except per share amounts)

Results for the three and six months ended June 30, 2021 and 2020 included certain items identified as affecting comparability. Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”), adjusted earnings from continuing operations before income taxes, adjusted provision for income taxes, adjusted net earnings from continuing operations attributable to ViacomCBS, and adjusted diluted EPS from continuing operations (together, the “adjusted measures”) exclude the impact of these items and are measures of performance not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We use these measures to, among other things, evaluate our operating performance. These measures are among the primary measures used by management for planning and forecasting of future periods, and they are important indicators of our operational strength and business performance. In addition, we use Adjusted OIBDA to, among other things, value prospective acquisitions. We believe these measures are relevant and useful for investors because they allow investors to view performance in a manner similar to the method used by our management; provide a clearer perspective on our underlying performance; and make it easier for investors, analysts and peers to compare our operating performance to other companies in our industry and to compare our year-over-year results.

Because the adjusted measures are measures of performance not calculated in accordance with GAAP, they should not be considered in isolation of, or as a substitute for, operating income, earnings from continuing operations before income taxes, provision/benefit for income taxes, net earnings from continuing operations attributable to ViacomCBS or diluted EPS from continuing operations, as applicable, as indicators of operating performance. These measures, as we calculate them, may not be comparable to similarly titled measures employed by other companies.

The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with GAAP.

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2021				2020				2021				2020
Operating income (GAAP)		$	1,226			$	1,251			$	2,754			$	2,153
Depreciation and amortization (a)		95				122				194				234
Restructuring and other corporate matters (b)		35				158				35				389
Programming charges (b)		—				121				—				121
Net gain on sales (b)		(116		)		—				(116		)		—
Adjusted OIBDA (Non-GAAP)		$	1,240			$	1,652			$	2,867			$	2,897

(a)		The three and six months ended June 30, 2020 include an impairment charge for FCC licenses of $25 million and the six months ended June 30, 2020 also includes accelerated depreciation of $12 million for technology that was abandoned in connection with synergy plans related to the merger of Viacom Inc. with and into CBS Corporation (the “Merger”).
(b)		See notes on the following tables for additional information on items affecting comparability.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
		Three Months Ended June 30, 2021
		Earnings from Continuing Operations Before Income Taxes				(Provision) Benefit for Income Taxes				Net Earnings from Continuing Operations Attributable to ViacomCBS				Diluted EPS from Continuing Operations
Reported (GAAP)		$	1,018			$	34			$	995			$	1.50
Items affecting comparability:
Restructuring and other corporate matters (a)			35				(8	)			27				.04
Net gain on sales (b)			(116	)			27				(89	)			(.13	)
Net gains from investments (c)			(32	)			7				(25	)			(.04	)
Discrete tax items (d)			—				(268	)			(268	)			(.40	)
Adjusted (Non-GAAP)		$	905			$	(208	)		$	640			$	.97

(a)		Reflects the impairment of lease assets in connection with cost transformation initiatives related to the Merger.
(b)		Primarily reflects a gain on the sale of a noncore trademark licensing operation.
(c)		Reflects a gain of $37 million on the sale of an investment, partially offset by a decrease in the fair value of a marketable security of $5 million.
(d)		Primarily reflects a benefit of $260 million to remeasure our UK net deferred income tax asset as a result of the enactment during the quarter of an increase in the UK corporate income tax rate from 19% to 25% beginning April 1, 2023, as well as a net tax benefit in connection with the settlement of income tax audits.

		Three Months Ended June 30, 2020
		Earnings from Continuing Operations Before Income Taxes				Provision for Income Taxes				Net Earnings from Continuing Operations Attributable to ViacomCBS				Diluted EPS from Continuing Operations
Reported (GAAP)		$	902			$	(192	)		$	453			$	.73
Items affecting comparability:
Restructuring and other corporate matters (a)			158				(34	)			124				.20
Impairment charge (b)			25				(6	)			19				.03
Programming charges (c)			121				(29	)			92				.15
Gains from investments (d)			(32	)			8				(24	)			(.03	)
Loss on extinguishment of debt			103				(24	)			79				.13
Discrete tax items			—				1				1				—
Adjusted (Non-GAAP)		$	1,277			$	(276	)		$	744			$	1.21

(a)		Reflects severance, exit costs and other costs related to the Merger and a charge to write down property and equipment to its fair value less costs to sell.
(b)		Reflects a charge to reduce the carrying values of FCC licenses in two markets to their fair values.
(c)		Primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19.
(d)		Reflects an increase to the carrying value of an investment based on the market price of a similar investment.

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued)
(Unaudited; in millions, except per share amounts)
		Six Months Ended June 30, 2021
		Earnings from Continuing Operations Before Income Taxes				Provision for Income Taxes				Net Earnings from Continuing Operations Attributable to ViacomCBS				Diluted EPS from Continuing Operations
Reported (GAAP)		$	2,173			$	(192	)		$	1,894			$	2.93
Items affecting comparability:
Restructuring and other corporate matters (a)			35				(8	)			27				.04
Net gain on sales (b)			(116	)			27				(89	)			(.14	)
Gains from investments (c)			(52	)			12				(40	)			(.06	)
Loss on extinguishment of debt			128				(30	)			98				.15
Discrete tax items (d)			—				(289	)			(289	)			(.45	)
Adjusted (Non-GAAP)		$	2,168			$	(480	)		$	1,601			$	2.47

(a)		Reflects the impairment of lease assets in connection with cost transformation initiatives related to the Merger.
(b)		Primarily reflects a gain on the sale of a noncore trademark licensing operation.
(c)		Reflects a gain of $37 million on the sale of an investment and an increase in the fair value of marketable securities of $15 million.
(d)		Primarily reflects a benefit of $260 million to remeasure our UK net deferred income tax asset as a result of the enactment during the quarter of an increase in the UK corporate income tax rate from 19% to 25% beginning April 1, 2023, as well as a net tax benefit in connection with the settlement of income tax audits.

		Six Months Ended June 30, 2020
		Earnings from Continuing Operations Before Income Taxes				Provision for Income Taxes				Net Earnings from Continuing Operations Attributable to ViacomCBS				Diluted EPS from Continuing Operations
Reported (GAAP)		$	1,549			$	(326	)		$	954			$	1.55
Items affecting comparability:
Restructuring and other corporate matters (a)			389				(81	)			308				.49
Impairment charge (b)			25				(6	)			19				.03
Depreciation of abandoned technology (c)			12				(3	)			9				.01
Programming charges (d)			121				(29	)			92				.15
Gains from investments (e)			(32	)			8				(24	)			(.04	)
Loss on extinguishment of debt			103				(24	)			79				.13
Discrete tax items			—				(3	)			(3	)			—
Adjusted (Non-GAAP)		$	2,167			$	(464	)		$	1,434			$	2.32

(a)		Reflects severance, exit and other costs related to the Merger and a charge to write down property and equipment to its fair value less costs to sell.
(b)		Reflects a charge to reduce the carrying values of FCC licenses in two markets to their fair values.
(c)		Reflects accelerated depreciation for technology that was abandoned in connection with synergy plans related to the Merger.
(d)		Primarily related to the abandonment of certain incomplete programs resulting from production shutdowns related to COVID-19.
(e)		Reflects an increase to the carrying value of an investment based on the market price of a similar investment.

 

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FAQ

What were ViacomCBS's financial results for Q2 2021?

ViacomCBS reported Q2 2021 revenue of $6.564B, with net earnings of $995M and diluted EPS of $1.50.

How much did ViacomCBS's streaming revenue grow in Q2 2021?

Streaming revenue increased by 92% year-over-year, driven by a strong subscriber base.

What was the subscriber growth for Paramount+ in Q2 2021?

Paramount+ added 6.5 million subscribers in Q2 2021, reaching over 42 million globally.

What were the key drivers of ViacomCBS's advertising revenue growth?

Advertising revenue grew by 24% due to CBS broadcasts of significant sporting events and an improved advertising market.

Did ViacomCBS face any challenges in Q2 2021?

Despite strong revenue growth, adjusted OIBDA decreased by 25% year-over-year.