ViacomCBS exceeded Wall Street earnings expectations in the first quarter, paced by the addition of 6 million global streaming subscribers.
The rebrand of CBS All Access as Paramount+ took place in March in the U.S. and the company began a global rollout. The company said it had 36 global streaming subscribers as of the end of the quarter, mostly on Paramount+ but also on Showtime’s OTT service and more targeted outlets like BET+.
Revenue came in at $7.4 billion for the period ending March 31, ahead of analysts’ consensus forecast for $7.2 billion. Earnings per share of $1.42 also cleared the bar and rose 75% from the year-earlier quarter. Adjusted for non-recurring items, earnings reached $1.52.
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NBCUniversal Telemundo Launching Streaming-Focused Studio, With 35 Projects In PipelineStreaming revenue climbed 65% to $816 million, led by Paramount+. The company said key subscription drivers included February’s Super Bowl, the NCAA Men’s Basketball Tournament in March, UEFA Champions League soccer and Oprah Winfrey’s interview with Meghan Markle and Prince Harry.
Kids’ content was also central to the effort, with Nickelodeon the main subscription draw globally, SpongeBob SquarePants and iCarly in particular.
ViacomCBS also said Showtime’s OTT service had its best quarter ever in sign-ups, streams and hours watched. Originals like Your Honor and Shameless, plus theatrical films, paced the growth.
The Super Bowl also propelled overall results. Advertising in the TV Entertainment division, which includes CBS, surged 40% to $1.8 billion.
The picture in Cable Networks was a bit cloudier. Revenue increased 14% year-over-year, driven by growth in licensing, higher streaming advertising and streaming subscription revenue. But advertising revenue, excluding streaming revenue, decreased 7% year-over-year, largely because of a decline in domestic advertising.
Paramount Pictures improved over a Covid-19-hit 2020 quarter, with revenue up 23% to $997 million, all but $1 million of that on the licensing and “other” front as theaters remained largely closed. Licensing revenue increased 55%, mostly from sales to Paramount+ and other outlets.
