ViacomCBS edges past revenue estimates on streaming strength (updated)

Paramount Global

04/11/2021 11:15

(Adds details, information from earnings call.)
    By Eva  Mathews and Helen Coster
    Nov 4 (Reuters) - ViacomCBS Inc  VIAC.O  on Thursday posted
better-than-expected quarterly revenue, helped by more
subscriber additions to its fast-growing streaming platforms and
strong advertising sales.
    The company added 4.3 million global streaming subscribers
in the quarter, led by Paramount+, bringing the total to nearly
47 million. Content including "A Quiet Place Part II", "Paw
Patrol: The Movie", the return of the NFL, and the new CBS fall
television season contributed to that growth.
    A large part of the media giant's business was buoyed by a
rebound in ad-spending, driven by the resumption of live sports.
    That, coupled with viewers flocking to the company's diverse
cable and streaming network that includes PlutoTV, Comedy
Central, Nickelodeon, Showtime and Paramount+ has bumped up
subscription additions. 
    With people now stepping out seeking in-person entertainment
and increased pressure on traditional pay-TV services, media
companies across the industry are looking to bolster their
streaming services to take on giants like Netflix  NFLX.O  and
Walt Disney Co's  DIS.N  Disney+. Bundling services together
through commercial partnerships is one option.
    U.S wireless carrier T-Mobile  TMUS.O  said on Thursday
customers who pay a monthly bill and home internet plan
subscribers would get Paramount+ Essential (which does not
include local live CBS station coverage) free for a year.
    Revenue rose 13% to $6.61 billion in the third quarter ended
Sept. 30. Analysts on average had expected $6.57 billion,
according to Refinitiv data.  urn:newsml:reuters.com:*:nPn5yzfgDa
    ViacomCBS' streaming revenue rose 62% during the quarter to
about $1.1 billion.
    On a call with investors the company said it expects
fourth-quarter streaming expenses, including content and
marketing, to rise $350 million relative to third-quarter
streaming costs. 
    Operating income stood at $879 million, down from $903
million, a year earlier. Adjusted profit of 76 cents was in-line
with Wall Street's estimate.

 (Reporting by Eva Mathews in Bengaluru and Helen Coster in New
York; Editing by Shailesh Kuber, Elaine Hardcastle)
 ((Eva.Mathews@thomsonreuters.com;))