ViacomCBS Reports Q3 2021 Earnings Results

Rhea-AI Summary

ViacomCBS reported a significant 13% increase in total revenue for Q3 2021, reaching $6.61 billion. Notably, global streaming revenue surpassed $1 billion for the first time, marking a 62% year-over-year growth. The company added 4.3 million streaming subscribers, totaling nearly 47 million, while streaming subscription revenue grew by 79%. However, diluted EPS fell by 25% to $0.69.

Advertising revenue saw a modest growth of 1%, but operational income dropped by 3%.

Positive

• Overall revenue rose 13% to $6.61 billion.
• Streaming revenue surged 62% year-over-year, exceeding $1 billion.
• Gained 4.3 million global streaming subscribers, totaling nearly 47 million.
• Streaming subscription revenue increased by 79% year-over-year.

Negative

• Diluted EPS decreased by 25% to $0.69.
• Operating income fell by 3% year-over-year.

NEW YORK, Nov. 4, 2021 /PRNewswire/ --

• Total Company Revenue Increased 13% Year-Over-Year, Reflecting Growth Across All Revenue Streams
• Quarterly Global Streaming Revenue Surpassed $1 Billion for the First Time, with Growth of 62% Year-Over-Year, Driven by Strength in Subscriptions and Advertising
• Added 4.3M Global Streaming Subscribers to Reach Nearly 47M in the Quarter, and Achieved 79% Year-Over-Year Growth in Streaming Subscription Revenue
• Subscriber Acquisition and Consumption on Paramount+ Fueled By a Diverse Global Content Offering, Including A Quiet Place Part II, Paw Patrol: The Movie, the Return of the NFL, and the New CBS Fall Season
• Generated 48% Year-Over-Year Growth in Streaming Advertising Revenue, Largely Driven by Pluto TV, Which Grew Global Monthly Active Users (MAUs) to Over 54M and Revenue by 99% Year-Over-Year
• Announced Broad Distribution Agreement with T-Mobile to Provide Its Customers with Paramount+

STATEMENT FROM BOB BAKISH PRESIDENT & CEO

"ViacomCBS continued to show tremendous momentum across the business as we executed against our strategy. We added 4.3M global streaming subscribers, raising our total to nearly 47M, driven by the scaling of the diverse content offering on Paramount+. Looking forward, we're thrilled about the fresh array of content coming to Paramount+ in the next few months and can't wait to share it with our global audience. Our strategy is clearly working and we'll continue to use the power of global content, distribution and market expansion to drive scale."

Q32021 RESULTS*
$ IN MILLIONS, EXCEPT PER SHARE AMOUNTS
		Three Months Ended September 30											Nine Months Ended June 30
GAAP		2021				2020				B/(W)%			2021				2020				B/(W)%
Revenue		$	6,610			$	5,837			13	%		$	20,586			$	18,411			12	%
▪Advertising**		1,855				1,828				1	%		6,633				5,733				16	%
▪Affiliate**		2,102				2,059				2	%		6,284				5,956				6	%
▪Streaming		1,079				666				62	%		2,878				1,673				72	%
▪Theatrical		67				6				n/m			202				176				15	%
▪Licensing and other		1,507				1,278				18	%		4,589				4,873				(6)	%
Operating income		$	879			$	903			(3)	%		$	3,633			$	3,056			19	%
Diluted EPS from continuing operations attributable to ViacomCBS		$	0.69			$	0.92			(25)	%		$	3.62			$	2.47			47	%
Non-GAAP†
Adjusted OIBDA		$	1,020			$	1,052			(3)	%		$	3,887			$	3,949			(2)	%
Adjusted diluted EPS from continuing operations attributable to ViacomCBS		$	0.76			$	0.83			(8)	%		$	3.23			$	3.16			2	%
† 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.
**Excludes streaming revenue.
n/m = not meaningful

OVERVIEW OF Q3 REVENUE

REVENUE BY TYPE

• Advertising revenue grew 1% year-over-year, reflecting an improved advertising marketplace, partially offset by lower linear impressions, lower political advertising, and the absence of CNET Media Group ("CMG") as a result of its sale in the fourth quarter of 2020.
• Affiliate revenue increased 2% year-over-year, reflecting higher reverse compensation and expanded distribution.
• Streaming revenue rose 62% year-over-year:
• Streaming advertising revenue grew 48% year-over-year, driven by growth in advertising on Pluto TV and Paramount+.
• Streaming subscription revenue grew 79% year-over-year, reflecting strong subscriber growth from the company's subscription services.
• Theatrical revenue reflects the releases of Paw Patrol: The Movie, Snake Eyes: G.I. Joe Origins, and the second quarter release of A Quiet Place Part II, while the prior-year period was impacted by the closure or reduced capacity of movie theaters in response to COVID-19.
• Licensing and other revenue, which includes fees from the licensing of our internally produced television and film programming across third party platforms, as well as fees generated from home entertainment, consumer products, and live events, increased 18% year-over-year.

 

$ IN MILLIONS	Three Months Ended September 30															Nine Months Ended September 30
	2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Advertising*	$	1,855			$	1,828			$	27			1	%		$	6,633			$	5,733			$	900			16	%
Affiliate*	2,102				2,059				43				2			6,284				5,956				328				6
Streaming	1,079				666				413				62			2,878				1,673				1,205				72
▪Advertising	531				360				171				48			1,461				873				588				67
▪Subscription	548				306				242				79			1,417				800				617				77
Theatrical	67				6				61				n/m			202				176				26				15
Licensing and other	1,507				1,278				229				18			4,589				4,873				(284)				(6)
Total Revenue	$	6,610			$	5,837			$	773			13	%		$	20,586			$	18,411			$	2,175			12	%
*Excludes streaming revenue     n/m = not meaningful

GLOBAL STREAMING HIGHLIGHTS

• Global streaming subscribers rose to nearly 47M, adding 4.3M subscribers in the quarter.
• Subscriber additions in the quarter were led by Paramount+.
• Domestically, Paramount+ saw strong subscriber sign-ups and engagement from a variety of content, including A Quiet Place Part II, Paw Patrol: The Movie, as well as the start of the NFL season.
• Internationally, Paramount+ launches to date have had strong momentum, led by progress in Latin America, Brazil, Australia and Canada.
• SHOWTIME OTT benefited from originals, including Billions, American Rust and The Chi.
• Announced the signing of SkyShowtime, a joint venture with Comcast that will include premium and original content from both companies.
• SkyShowtime will reach more than 20 European territories encompassing 90 million homes.
• Pluto TV revenue grew 99% year-over-year, as MAUs increased to over 54M in the quarter, helped by international growth.

REPORTING SEGMENTS

TV ENTERTAINMENT

• In Q3, CBS was the most-watched network in Daytime and Late Night. Hits like The Late Show With Stephen Colbert and Big Brother were leaders in their respective categories among key demos.
• Revenue grew 24% year-over-year, primarily driven by higher licensing, streaming, and affiliate revenue, partially offset by lower advertising revenue.
• Advertising revenue decreased 2% year-over-year, primarily reflecting an unfavorable comparison to the prior-year revenue benefit from political advertising and the absence of CMG, partially offset by an improved advertising market in 2021.
• Affiliate revenue grew 4% year-over-year, driven by growth in reverse compensation.
• Streaming revenue rose 81% year-over-year, reflecting subscriber and advertising growth at Paramount+.
• Licensing and other revenue increased 79% year-over-year, driven by the timing of program availability primarily due to COVID-19 production shutdowns in the prior-year, and a higher volume of domestic licensing.
• Adjusted OIBDA decreased 21% year-over-year, reflecting the company's increased investment in Paramount+.

 

$ IN MILLIONS	Three Months Ended September 30															Nine Months Ended September 30
	2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue	$	2,924			$	2,354			$	570			24	%		$	9,244			$	7,588			$	1,656			22	%
▪Advertising*	943				966				(23)				(2)			3,838				3,134				704				22
▪Affiliate*	698				674				24				4			2,082				1,926				156				8
▪Streaming	390				216				174				81			1,062				613				449				73
▪Licensing and other	893				498				395				79			2,262				1,915				347				18
Expenses	2,653				2,011				(642)				(32)			8,308				6,280				(2,028)				(32)
Adjusted OIBDA	$	271			$	343			$	(72)			(21)	%		$	936			$	1,308			$	(372)			(28)	%
*Excludes streaming revenue

CABLE NETWORKS

• In Q3, ViacomCBS had the most programs among the top 25 original cable series among P18-49, P18-34 and K2-11, more than any other cable family, including the top two Kids programs with Paw Patrol and The Patrick Star Show.
• Revenue increased 13% year-over-year, reflecting growth across all revenue streams.
• Advertising revenue increased 6% year-over-year, largely driven by an improved advertising marketplace, partially offset by lower linear impressions.
• Affiliate revenue grew 1% year-over-year, reflecting expanded vMVPD distribution and rate increases, partially offset by subscriber declines.
• Streaming revenue increased 53% year-over-year, largely fueled by advertising revenue growth from Pluto TV, as well as growth in subscribers for subscription streaming services.
• Licensing and other revenue increased 23% year-over-year, primarily driven by the licensing of programming to Paramount+.
• Adjusted OIBDA increased 5% year-over-year, reflecting the above-mentioned revenue growth, partially offset by an increased investment in streaming services and a higher level of original programming.

 

$ IN MILLIONS	Three Months Ended September 30															Nine Months Ended September 30
	2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue	$	3,458			$	3,061			$	397			13	%		$	10,192			$	9,151			$	1,041			11	%
▪Advertising*	917				862				55				6			2,806				2,622				184				7
▪Affiliate*	1,404				1,385				19				1			4,202				4,030				172				4
▪Streaming	689				450				239				53			1,816				1,060				756				71
▪Licensing and other	448				364				84				23			1,368				1,439				(71)				(5)
Expenses	2,552				2,195				(357)				(16)			6,977				6,206				(771)				(12)
Adjusted OIBDA	$	906			$	866			$	40			5	%		$	3,215			$	2,945			$	270			9	%
*Excludes streaming revenue

FILMED ENTERTAINMENT

• Revenue declined 2% year-over-year, driven by lower licensing revenues, partially offset by the benefit of current quarter theatrical releases.
• Theatrical includes revenues from the third quarter releases of Paw Patrol: The Movie, Snake Eyes: G.I. Joe Origins, and the second quarter release of A Quiet Place Part II, while the prior-year period was impacted by the by the closure or reduced capacity of movie theaters in response to COVID-19.
• Licensing and other revenue decreased 12% year-over-year due to lower volume of programming produced for third parties.
• Adjusted OIBDA declined $16 million year-over-year, reflecting lower profits from current year releases as a result of higher distribution costs, as well as distribution costs associated with anticipated releases.

 

$ IN MILLIONS	Three Months Ended September 30															Nine Months Ended September 30
	2021				2020				$ B/(W) %							2021				2020				$ B/(W) %
Revenue	$	580			$	590			$	(10)			(2)	%		$	2,244			$	2,048			$	196			10	%
▪Theatrical	67				6				61				n/m			202				176				26				15
▪Licensing and other	513				584				(71)				(12)			2,042				1,872				170				9
Expenses	542				536				(6)				(1)			1,930				1,851				(79)				(4)
Adjusted OIBDA	$	38			$	54			$	(16)			(30)	%		$	314			$	197			$	117			59	%
n/m = not meaningful

BALANCE SHEET & LIQUIDITY

• As of September 30, 2021, the company had $4.8B 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 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								Nine Months Ended
	September 30,								September 30,
	2021				2020				2021				2020
Revenues	$	6,610			$	5,837			$	20,586			$	18,411
Costs and expenses:
Operating	4,064				3,462				12,292				10,779
Selling, general and administrative	1,526				1,323				4,407				3,804
Depreciation and amortization	95				97				289				331
Restructuring and other corporate matters	46				52				81				441
Total costs and expenses	5,731				4,934				17,069				15,355
Net gain on sales	—				—				116				—
Operating income	879				903				3,633				3,056
Interest expense	(243)				(259)				(745)				(763)
Interest income	11				14				37				39
Net gains (losses) from investments	(5)				—				47				32
Loss on extinguishment of debt	—				(23)				(128)				(126)
Other items, net	(26)				(20)				(55)				(74)
Earnings from continuing operations before income taxes and equity    in loss of investee companies	616				615				2,789				2,164
Provision for income taxes	(120)				(26)				(312)				(352)
Equity in loss of investee companies, net of tax	(18)				(9)				(80)				(30)
Net earnings from continuing operations	478				580				2,397				1,782
Net earnings from discontinued operations, net of tax	73				47				126				90
Net earnings (ViacomCBS and noncontrolling interests)	551				627				2,523				1,872
Net earnings attributable to noncontrolling interests	(13)				(12)				(38)				(260)
Net earnings attributable to ViacomCBS	$	538			$	615			$	2,485			$	1,612
Amounts attributable to ViacomCBS:
Net earnings from continuing operations	$	465			$	568			$	2,359			$	1,522
Net earnings from discontinued operations, net of tax	73				47				126				90
Net earnings attributable to ViacomCBS	$	538			$	615			$	2,485			$	1,612
Basic net earnings per common share attributable to ViacomCBS:
Net earnings from continuing operations	$	.70			$	.92			$	3.65			$	2.47
Net earnings from discontinued operations	$	.11			$	.08			$	.20			$	.15
Net earnings	$	.81			$	1.00			$	3.85			$	2.62
Diluted net earnings per common share attributable to ViacomCBS: (a)
Net earnings from continuing operations	$	.69			$	.92			$	3.62			$	2.47
Net earnings from discontinued operations	$	.11			$	.08			$	.20			$	.15
Net earnings	$	.80			$	1.00			$	3.81			$	2.61
Weighted average number of common shares outstanding:
Basic	646				616				638				615
Diluted	651				618				644				617
(a) Diluted net earnings per common share ("EPS") for the three and nine months ended September 30, 2021, excludes the effect of the assumed conversion of our 5.75% Series A Mandatory Convertible Preferred Stock to shares of common stock since it would have been antidilutive. As a result, in the calculations of diluted EPS the weighted average number of diluted shares outstanding does not include the assumed issuance of shares upon conversion of preferred stock, and preferred stock dividends recorded during the three and nine months ended September 30, 2021 of $14 million and $30 million, respectively, are deducted from net earnings from continuing operations and net earnings, as applicable.

 

VIACOMCBS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited; in millions, except per share amounts)
	At						At
	September 30, 2021						December 31, 2020
ASSETS
Current Assets:
Cash and cash equivalents		$	4,823					$	2,984
Receivables, net		6,560						7,017
Programming and other inventory		1,563						1,757
Prepaid expenses and other current assets		1,230						1,391
Current assets of discontinued operations		622						630
Total current assets		14,798						13,779
Property and equipment, net		1,809						1,994
Programming and other inventory		12,564						10,363
Goodwill		16,582						16,612
Intangible assets, net		2,790						2,826
Operating lease assets		1,511						1,602
Deferred income tax assets, net		1,221						993
Other assets		3,622						3,657
Assets held for sale		207						28
Assets of discontinued operations		808						809
Total Assets		$	55,912					$	52,663
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable		$	827					$	571
Accrued expenses		1,878						1,714
Participants' share and royalties payable		2,099						2,005
Accrued programming and production costs		1,397						1,141
Deferred revenues		1,074						978
Debt		15						16
Other current liabilities		1,138						1,391
Current liabilities of discontinued operations		485						480
Total current liabilities		8,913						8,296
Long-term debt		17,696						19,717
Participants' share and royalties payable		1,228						1,317
Pension and postretirement benefit obligations		1,966						2,098
Deferred income tax liabilities, net		965						778
Operating lease liabilities		1,525						1,583
Program rights obligations		291						243
Other liabilities		1,948						2,158
Liabilities of discontinued operations		208						220
Redeemable noncontrolling interest		103						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		32,943						29,785
Treasury stock, at cost; 503 (2021 and 2020) Class B shares		(22,958)						(22,958)
Retained earnings		12,456						10,375
Accumulated other comprehensive loss		(1,883)						(1,832)
Total ViacomCBS stockholders' equity		20,559						15,371
Noncontrolling interests		510						685
Total Equity		21,069						16,056
Total Liabilities and Equity		$	55,912					$	52,663

 

VIACOMCBS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions)
	Nine Months Ended
	September 30,
	2021				2020
Operating Activities:
Net earnings (ViacomCBS and noncontrolling interests)	$	2,523			$	1,872
Less: Net earnings from discontinued operations, net of tax	126				90
Net earnings from continuing operations	2,397				1,782
Adjustments to reconcile net earnings from continuing operations to net cash flow provided      by operating activities:
Depreciation and amortization	289				331
Deferred tax (benefit) provision	(21)				187
Stock-based compensation	154				188
Net gain on sales	(116)				—
Gains from investments	(47)				(32)
Loss on extinguishment of debt	128				126
Equity in loss of investee companies, net of tax and distributions	80				34
Change in assets and liabilities	(1,336)				(62)
Net cash flow provided by operating activities from continuing operations	1,528				2,554
Net cash flow provided by operating activities from discontinued operations	124				11
Net cash flow provided by operating activities	1,652				2,565
Investing Activities:
Investments	(147)				(60)
Capital expenditures	(231)				(210)
Acquisitions, net of cash acquired	(27)				(142)
Proceeds from dispositions	418				146
Other investing activities	(26)				—
Net cash flow used for investing activities from continuing operations	(13)				(266)
Net cash flow used for investing activities from discontinued operations	(3)				(3)
Net cash flow used for investing activities	(16)				(269)
Financing Activities:
Repayments of short-term debt borrowings, net	—				(706)
Proceeds from issuance of long-term debt	—				4,365
Repayment of long-term debt	(2,220)				(2,896)
Dividends paid on preferred stock	(15)				—
Dividends paid on common stock	(458)				(450)
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	(55)				(62)
Proceeds from exercise of stock options	408				—
Payments to noncontrolling interests	(215)				(44)
Other financing activities	1				(43)
Net cash flow provided by financing activities	101				106
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(30)				(6)
Net increase in cash, cash equivalents and restricted cash	1,707				2,396
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 $3 (2021) and $138 (2020) of restricted cash, and $6 (2020) of assets      held for sale)	$	4,826			$	3,230

 

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

Results for the three and nine months ended September 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								Nine Months Ended
	September 30,								September 30,
	2021				2020				2021				2020
Operating income (GAAP)	$	879			$	903			$	3,633			$	3,056
Depreciation and amortization (a)	95				97				289				331
Restructuring and other corporate matters (b)	46				52				81				441
Programming charges (b)	—				—				—				121
Net gain on sales (b)	—				—				(116)				—
Adjusted OIBDA (Non-GAAP)	$	1,020			$	1,052			$	3,887			$	3,949
(a) The nine months ended September 30, 2020 include an impairment charge for FCC licenses of $25 million and 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 September 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)		$	616					$	(120)					$	465					$	.69
Items affecting comparability:
Restructuring and other corporate matters (a)		46						(12)						34						.05
Loss from investments (b)		5						(1)						4						.01
Pension settlement charge (c)		10						(2)						8						.01
Discrete tax items		—						(1)						(1)						—
Adjusted (Non-GAAP)		$	677					$	(136)					$	510					$	.76
(a) Reflects severance costs associated with changes in management at certain of our businesses.
(b) Reflects the change in fair value of an investment which was sold during the quarter.
(c) Reflects the accelerated recognition of a portion of the unamortized actuarial losses due to the volume of lump sum benefit payments in one of our pension plans.

 

	Three Months Ended September 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)		$	615					$	(26)					$	568					$	.92
Items affecting comparability:
Restructuring and other corporate matters (a)		52						(12)						40						.06
Loss on extinguishment of debt		23						(5)						18						.03
Discrete tax items (b)		—						(119)						(119)						(.19)
Impairment of an equity-method investment		—						—						9						.01
Adjusted (Non-GAAP)		$	690					$	(162)					$	516					$	.83
(a) Reflects severance, exit costs and other costs related to the Merger.
(b) Primarily reflects a benefit from the remeasurement of our UK net deferred income tax asset as a result of an increase in the UK corporate income tax rate from 17% to 19% enacted during the third quarter of 2020.

 

SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL MEASURES (Continued) (Unaudited; in millions, except per share amounts)
	Nine Months Ended September 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)		$	2,789					$	(312)					$	2,359					$	3.62
Items affecting comparability:
Restructuring and other corporate matters (a)		81						(20)						61						.10
Net gain on sales (b)		(116)						27						(89)						(.14)
Gains from investments (c)		(47)						11						(36)						(.06)
Loss on extinguishment of debt		128						(30)						98						.15
Pension settlement charge (d)		10						(2)						8						.01
Discrete tax items (e)		—						(290)						(290)						(.45)
Adjusted (Non-GAAP)		$	2,845					$	(616)					$	2,111					$	3.23
(a) Reflects severance costs associated with changes in management at certain of our businesses and 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 an investment which was sold during the third quarter.
(d) Reflects the accelerated recognition of a portion of the unamortized actuarial losses due to the volume of lump sum benefit payments in one of our pension plans.
(e) 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.

 

	Nine Months Ended September 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)		$	2,164					$	(352)					$	1,522					$	2.47
Items affecting comparability:
Restructuring and other corporate matters (a)		441						(93)						348						.57
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		126						(29)						97						.16
Discrete tax items (f)		—						(122)						(122)						(.20)
Impairment of an equity-method investment		—						—						9						.01
Adjusted (Non-GAAP)		$	2,857					$	(626)					$	1,950					$	3.16
(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.
(f) Primarily reflects a benefit from the remeasurement of our UK net deferred income tax asset as a result of an increase in the UK corporate income tax rate from 17% to 19% enacted during the third quarter of 2020.

 

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SOURCE ViacomCBS Inc.

FAQ

What were ViacomCBS's Q3 2021 revenue results?

ViacomCBS reported a total revenue of $6.61 billion for Q3 2021, a 13% increase year-over-year.

How many streaming subscribers did ViacomCBS gain in Q3 2021?

ViacomCBS added 4.3 million global streaming subscribers in Q3 2021, bringing the total to nearly 47 million.

What percentage growth did ViacomCBS's streaming revenue experience in Q3 2021?

Streaming revenue grew by 62% year-over-year in Q3 2021, surpassing $1 billion.

What was the diluted EPS for ViacomCBS in Q3 2021?

The diluted EPS for ViacomCBS in Q3 2021 decreased by 25% to $0.69.

How did ViacomCBS's advertising revenue perform in Q3 2021?

ViacomCBS's advertising revenue saw a modest growth of 1% year-over-year, totaling $1.855 billion.