- 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
of Innovative New Sky Partnership
ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today reported financial
results for the quarter ended June 30, 2021.
STATEMENT FROM BOB BAKISH, PRESIDENT
& CEO
“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 June 30 Six Months Ended June
30 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 ViacomCBS $
995
$
453
120
%
$
1,894
$
954
99
%
Diluted EPS from continuing operations attributable to ViacomCBS $
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
ViacomCBS $
640
$
744
(14
)%
$
1,601
$
1,434
12
%
Adjusted diluted EPS from continuing operations attributable to
ViacomCBS $
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, 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.
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 June 30
Six Months Ended June 30
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.
- 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 the UK, Ireland, Italy,
Germany, Switzerland and Austria in 2022 as part of new Sky
partnership.
- SHOWTIME OTT delivered strong growth in sign-ups and
engagement, driven by originals, including The Chi, Shameless and
City on a Hill.
- 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.
- Adjusted OIBDA decreased 45% year-over-year, reflecting the
company’s increased investment in Paramount+.
$ IN MILLIONS
Three Months Ended June 30 Six
Months Ended June 30
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 June 30 Six
Months Ended June 30
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 June 30 Six
Months Ended June 30
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 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 partners on
five continents.
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
Six Months Ended
June 30,
June 30,
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 (ViacomCBS and noncontrolling
interests)
1,049
726
1,972
1,245
Net earnings attributable to
noncontrolling interests
(13
)
(245
)
(25
)
(248
)
Net earnings attributable to ViacomCBS
$
1,036
$
481
$
1,947
$
997
Amounts attributable to ViacomCBS:
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 ViacomCBS
$
1,036
$
481
$
1,947
$
997
Basic net earnings per common share
attributable to ViacomCBS:
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 ViacomCBS:
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
VIACOMCBS INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Unaudited; in millions,
except per share amounts)
At
At
June 30, 2021
December 31, 2020
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
Goodwill
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
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
32,901
29,785
Treasury stock, at cost; 503 (2021 and
2020) Class B shares
(22,958
)
(22,958
)
Retained earnings
12,007
10,375
Accumulated other comprehensive loss
(1,853
)
(1,832
)
Total ViacomCBS stockholders’ equity
20,098
15,371
Noncontrolling interests
558
685
Total Equity
20,656
16,056
Total Liabilities and Equity
$
55,204
$
52,663
VIACOMCBS INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited; in
millions)
Six Months Ended
June 30,
2021
2020
Operating Activities:
Net earnings (ViacomCBS and noncontrolling
interests)
$
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 $135 (2021) and $202 (2020) of
restricted cash)
3,119
834
Cash, cash equivalents and restricted cash
at end of period (includes $7 (2021) and $142 (2020) of restricted
cash)
$
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 June 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
Six Months Ended
June 30,
June 30,
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 June 30,
2020 include an impairment charge for FCC licenses of $25 million
and the six months ended June 30, 2020 also includes 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 June 30,
2021
Earnings from Continuing
Operations Before Income Taxes
(Provision) Benefit for Income
Taxes
Net Earnings from Continuing
Operations Attributable to ViacomCBS
Diluted EPS from Continuing
Operations
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 $37 million on the sale
of an investment, partially offset by a decrease in the fair value
of a marketable security of $5 million.
(d)
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.
Three Months Ended June 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)
$
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 June 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)
$
2,173
$
(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 $37 million on the sale
of an investment and an increase in the fair value of marketable
securities of $15 million.
(d)
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.
Six Months Ended June 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)
$
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 Justin Dini Executive Vice President,
Corporate Communications (212) 846-2724
justin.dini@viacomcbs.com
Peter Collins Vice President, Corporate Communications
(917) 826-4182 peter.collins@viacomcbs.com
Justin Blaber Senior Director, Corporate Communications
(646) 823-6616 justin.blaber@viacomcbs.com
Pranita Sookai Director, Corporate Communications (718)
316-2182 pranita.sookai@viacomcbs.com
INVESTORS Anthony DiClemente Executive Vice
President, Investor Relations (917) 796-4647
anthony.diclemente@viacomcbs.com
Jaime Morris Vice President, Investor Relations (646)
824-5450 jaime.morris@viacomcbs.com
Robert Amparo Manager, Investor Relations (347) 223-1682
robert.amparo@viacomcbs.com
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