ViacomCBS Reports Q2 2021 Earnings Results
ViacomCBS Reports Q2 2021 Earnings Results
August 5, 2021
- Grew Global Streaming Revenue 92% Year-Over-Year, Driven by Robust Growth in Subscriptions and Advertising
- Added 6.5M Global Streaming Subscribers to Reach Over 42M in the Quarter, and Realized 82% Year-Over-Year Growth in Streaming Subscription Revenue, Fueled by the Diverse Global Content Offering of Paramount+
- Generated 102% Year-Over-Year Growth in Streaming Advertising Revenue, Largely Driven by Pluto TV, Which More Than Doubled Revenue for the
Fourth Consecutive Quarter
- Increased Total Company Revenue 8% Year-Over-Year, Including 24% Growth in Advertising Revenue and 9% Growth in Affiliate Revenue Year-Over-Year
- Recently Announced Comprehensive, Multi-Year Distribution Agreements with Charter Communications and
Cox Communications for Continued Carriage of ViacomCBS Content and Streaming Services - Expanding Paramount+ Footprint Internationally to Include the
UK ,Ireland ,Italy ,Germany ,Switzerland &Austria , as Part ofInnovative New Sky Partnership
STATEMENT FROM
“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 |
Six Months Ended |
|||||||||||||||||||||
| 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 |
$ |
995 |
$ |
453 |
120 |
% |
$ |
1,894 |
$ |
954 |
99 |
% |
||||||||||
| Diluted EPS from continuing operations attributable to |
$ |
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 |
$ |
640 |
$ |
744 |
(14 |
)% |
$ |
1,601 |
$ |
1,434 |
12 |
% |
||||||||||
| Adjusted diluted EPS from continuing operations attributable to |
$ |
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, |
||||||||||||||||||||||
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 |
Six Months Ended |
||||||||||||||||||||||||
|
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.
- The top drivers of sign-ups included the new iCarly series, Infinite,
- 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 theUK ,Ireland ,Italy ,Germany ,Switzerland andAustria in 2022 as part of new Sky partnership.
- Domestically, Paramount+ originals drove strong subscriber sign-ups and engagement.
- SHOWTIME OTT delivered strong growth in sign-ups and engagement, driven by originals, including The Chi, Shameless and City on a Hill.
- Subscriber additions in the quarter were led by Paramount+.
- 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.
- Advertising revenue increased 24% year-over-year, reflecting CBS’ broadcast of the national semi-finals and championship games of the
- Adjusted OIBDA decreased 45% year-over-year, reflecting the company’s increased investment in Paramount+.
| $ IN MILLIONS | Three Months Ended |
Six Months Ended |
||||||||||||||||||||||||||||
|
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 |
Six Months Ended |
||||||||||||||||||||||||||||
|
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 |
Six Months Ended |
||||||||||||||||||||||||||||
|
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
For more information about
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
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|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(Unaudited; in millions, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
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 ( |
1,049 |
|
|
726 |
|
|
1,972 |
|
|
1,245 |
|
|||||
|
Net earnings attributable to noncontrolling interests |
(13 |
) |
|
(245 |
) |
|
(25 |
) |
|
(248 |
) |
|||||
|
Net earnings attributable to |
$ |
1,036 |
|
|
$ |
481 |
|
|
$ |
1,947 |
|
|
$ |
997 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Amounts attributable to |
|
|
|
|
|
|
|
|||||||||
|
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 |
$ |
1,036 |
|
|
$ |
481 |
|
|
$ |
1,947 |
|
|
$ |
997 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Basic net earnings per common share attributable to |
|
|
|
|
|
|
|
|||||||||
|
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 |
|
|
|
|
|
|
|
|||||||||
|
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 |
|
|||||
|
|
||||||||
|
|
||||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Unaudited; in millions, except per share amounts) |
||||||||
|
|
At |
|
At |
|||||
|
|
|
|
|
|||||
|
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 |
|
||||
|
|
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 |
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
5.75% Series A Mandatory Convertible Preferred Stock, par value |
— |
|
— |
|
||||
|
Class A Common Stock, par value |
— |
|
— |
|
||||
|
Class B Common Stock, par value |
1 |
|
1 |
|
||||
|
Additional paid-in capital |
32,901 |
|
29,785 |
|
||||
|
|
(22,958 |
) |
(22,958 |
) |
||||
|
Retained earnings |
12,007 |
|
10,375 |
|
||||
|
Accumulated other comprehensive loss |
(1,853 |
) |
(1,832 |
) |
||||
|
Total |
20,098 |
|
15,371 |
|
||||
|
Noncontrolling interests |
558 |
|
685 |
|
||||
|
Total Equity |
20,656 |
|
16,056 |
|
||||
|
Total Liabilities and Equity |
$ |
55,204 |
|
$ |
52,663 |
|
||
|
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited; in millions) |
||||||||
|
|
Six Months Ended |
|||||||
|
|
|
|||||||
|
|
2021 |
|
2020 |
|||||
|
Operating Activities: |
|
|
|
|||||
|
Net earnings ( |
$ |
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 |
3,119 |
|
|
834 |
|
|||
|
Cash, cash equivalents and restricted cash at end of period (includes |
$ |
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
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
The following tables reconcile the adjusted measures to their most directly comparable financial measures in accordance with GAAP.
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
|
|
|
|
|||||||||||||
|
|
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 |
|
|
(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 |
|||||||||||||||
|
|
Earnings from |
|
(Provision) |
|
Net Earnings |
|
Diluted EPS |
|||||||||
|
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 |
|
|
(d) |
Primarily reflects a benefit of |
|
|
Three Months Ended |
|||||||||||||||
|
|
Earnings from |
|
Provision for |
|
Net Earnings |
|
Diluted EPS |
|||||||||
|
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 |
|||||||||||||||
|
|
Earnings from |
|
Provision for |
|
Net Earnings |
|
Diluted EPS |
|||||||||
|
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 |
|
|
(d) |
Primarily reflects a benefit of |
|
|
Six Months Ended |
|||||||||||||||
|
|
Earnings from |
|
Provision for |
|
Net Earnings |
|
Diluted EPS |
|||||||||
|
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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210805005275/en/
PRESS
Executive Vice President, Corporate Communications
(212) 846-2724
justin.dini@viacomcbs.com
Vice President, Corporate Communications
(917) 826-4182
peter.collins@viacomcbs.com
Senior Director, Corporate Communications
(646) 823-6616
justin.blaber@viacomcbs.com
Director, Corporate Communications
(718) 316-2182
pranita.sookai@viacomcbs.com
INVESTORS
Executive Vice President, Investor Relations
(917) 796-4647
anthony.diclemente@viacomcbs.com
Vice President, Investor Relations
(646) 824-5450
jaime.morris@viacomcbs.com
Manager, Investor Relations
(347) 223-1682
robert.amparo@viacomcbs.com
Source: