ViacomCBS cracked the $1 billion mark in streaming revenue in the third quarter, but overall results were more subdued, with total revenue rising 13% to $6.6 billion and earnings per share declining to 69 cents.
The revenue number just slipped past Wall Street analysts’ expectations, while the earnings-per-share tally, down from 92 cents in the same period of 2020, came up short of analysts’ consensus.
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Streaming revenue jumped 62% from a year ago, reaching almost $1.1 billion, with overall subscriptions increasing 4.3 million around the world to hit 47 million. Earlier this year, the company rebranded and expanded CBS All Access as Paramount+. Along with third-quarter financials, the company also announced a deal with T-Mobile offering postpaid customers of the wireless provider with one year of Paramount+ at no extra charge.
Advertising inched up 1%, with the company citing a dip in political spending compared with the 2020 period. Cable network ad revenue gained 6%, while streaming advertising revenue climbed 48% to $531 million. Free, ad-supported streaming outlet Pluto TV continued to be a mainstay, with revenue up 99% and monthly active users rising to 54 million, paced by global expansion.
The pace of streaming growth slowed from the previous quarter, when ViacomCBS added 6.5 million subscribers. The company has continued to report a consolidating streaming number, which includes Paramount+ and Showtime’s subscription service, as well as niche offerings BET+ and Noggin.
Paramount Pictures revenue dipped $10 million from a year ago to $580 million. Theatrical proceeds of $67 million grew tenfold from the Covid-afflicted 2020 period, with contributions from Paw Patrol: The Movie, Snake Eyes: G.I. Joe Origins and carryover grosses from spring release A Quiet Place Part II. Licensing and other revenue decreased 12% year-over-year, with the company citing a drop in programming produced for third parties.
In the TV Entertainment division, which includes CBS Entertainment and CBS Sports, revenue grew 24% to $2.9 billion. The company credited higher licensing, streaming, and affiliate revenue, saying those positives were offset by lower advertising revenue.
During a conference call with analysts, executives said they are planning to update the way they report financial results, grouping TV and streaming into more distinct units. Paramount’s film performance will continue to be tracked separately. The company also announced an investor day in the early part of 2022, when they plan to provide updates on programming, distribution and other aspects of their streaming efforts.
Next month will mark the two-year anniversary of the closing of the merger of Viacom and CBS, who share a common controlling shareholder in Shari Redstone’s National Amusements. The long-anticipated merger has been viewed as an initial step, with the company considered a prime candidate for an additional consolidation move.
