ViacomCBS exceeds revenue estimates on streaming strength

The ViacomCBS headquarters are pictured in New York, New York, United States, December 5, 2019. REUTERS / Kate Munsch / File Photo

Nov. 4 (Reuters) – ViacomCBS Inc (VIAC.O) posted better-than-expected quarterly revenue on Thursday, helped by more subscribers to its fast-growing streaming platforms and strong ad sales.

The company added 4.3 million global streaming subscribers in the quarter, led by Paramount +, bringing the total to nearly 47 million. Content such as “A Quiet Place Part II”, “Paw Patrol: The Movie”, the return of the NFL and the new CBS fall television season have contributed to this growth.

Much of the media giant’s business has been driven by a rebound in advertising 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 increased subscription additions.

As people now seek in-person entertainment and increased pressure on traditional pay-TV services, industry media companies are looking to beef up their streaming services to take on giants like Netflix (NFLX.O) and Walt. Disney Co’s (DIS. N) Disney +. Bundling services through business partnerships is an option.

U.S. wireless operator T-Mobile (TMUS.O) said on Thursday that customers who pay a monthly bill and subscribers to a home internet plan will get Paramount + Essential (which does not include CBS station coverage local live) for free for one year.

Revenue rose 13% to $ 6.61 billion in the third quarter ended September 30. Analysts were expecting an average of $ 6.57 billion, according to data from Refinitiv.

ViacomCBS’s streaming revenue grew 62% in the quarter to approximately $ 1.1 billion.

On a call with investors, the company said it expects fourth-quarter streaming spending, including content and marketing, to increase by $ 350 million from streaming costs. of the third trimester.

Operating profit was $ 879 million, up from $ 903 million a year earlier. The 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

Our Standards: Thomson Reuters Trust Principles.

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