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Jun 30, 2021

Paramount Q2 2021 Earnings Report

ViacomCBS demonstrated strong growth in streaming and advertising revenue, with Paramount+ driving subscriber additions.

Key Takeaways

ViacomCBS reported an 8% increase in total company revenue, driven by substantial growth in streaming and advertising. The company added 6.5 million global streaming subscribers, reaching over 42 million. Paramount+ was a key driver of subscriber growth and engagement.

Global streaming revenue grew by 92% year-over-year, driven by subscriptions and advertising.

Total company revenue increased by 8% year-over-year, with advertising revenue growing by 24% and affiliate revenue by 9%.

Global streaming subscribers reached over 42 million, with 6.5 million subscribers added in the quarter.

Pluto TV's revenue more than doubled for the fourth consecutive quarter, contributing significantly to streaming advertising growth.

Total Revenue
$6.56B
Previous year: $6.28B
+4.6%
EPS
$0.97
Previous year: $1.25
-22.4%
Adjusted OIBDA
$1.24B
Previous year: $1.69B
-26.6%
Gross Profit
$2.7B
Previous year: $2.79B
-3.3%
Cash and Equivalents
$5.38B
Previous year: $2.29B
+134.9%
Free Cash Flow
-$8M
Previous year: $714M
-101.1%
Total Assets
$55.2B
Previous year: $51.2B
+7.8%

Paramount

Paramount

Paramount Revenue by Segment

Forward Guidance

ViacomCBS is focused on scaling Paramount+'s content offerings and expanding its reach with global audiences. The company recently announced distribution agreements with Charter Communications and Cox Communications and plans to launch Paramount+ in new international markets.

Positive Outlook

  • Continued carriage of ViacomCBS content and streaming services through multi-year distribution agreements.
  • Expansion of Paramount+ footprint internationally, including key European markets.
  • Strong subscriber growth and engagement driven by Paramount+ originals.
  • Growth in advertising revenue, driven by CBS' broadcasts of sporting events and an improved advertising market.
  • Strong growth in sign-ups and engagement for SHOWTIME OTT, driven by originals.

Challenges Ahead

  • Adjusted OIBDA decreased due to increased investment in Paramount+.
  • Licensing and other revenue decreased due to the licensing of domestic streaming rights to South Park in the prior year.
  • Lower ratings partially offset advertising revenue growth in TV Entertainment.
  • Adjusted OIBDA declined in Filmed Entertainment due to distribution costs associated with theatrical releases.
  • Subscriber declines partially offset affiliate revenue growth in Cable Networks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income