NASDAQ$PSKY

Paramount Skydance Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ViacomCBS reported a solid quarter with operational momentum despite COVID-19 impact.

ViacomCBS's Q2 2020 earnings showed resilience amidst the COVID-19 pandemic, with sequential improvement in key earnings and cash flow metrics. The company successfully managed the pandemic's effects and progressed on value-creation initiatives, including cost synergies, distribution agreements, and streaming business acceleration.

  • Achieved second consecutive quarter of sequential improvement in operating income, adjusted OIBDA, operating cash flow, and free cash flow.
  • Executed significant distribution deals, unlocking value-creation opportunities across the combined asset base.
  • Delivered robust growth in streaming with record revenue, subscribers, MAUs, and consumption across free and pay services.
  • Increased target for annualized merger-related cost synergies while managing costs in response to COVID-19.

Headline financials

Total Revenue

$6.28B

Previous: $6.93B-9.4%
EPS (adj)

$1.25

Previous: $1.59-21.4%
Adjusted OIBDA

$1.69B

Previous: $1.56B+8.1%
Paramount+ Subscribers

16.2M

Previous: 9.3M+74.2%
Capital Expenditures

$81M

Previous: -$7M+1257.1%
Free Cash Flow

$714M

Previous: -$608M+217.4%
Net Income

$478M

Previous: $440M+8.6%
Operating Income

$1.29B

Previous: $695M+85.0%
Gross Profit

$2.79B

Previous: $1.3B+114.6%
Cash & Equivalents

$2.29B

Previous: $216M+959.3%
Total Assets

$51.2B

Previous: $23.8B+114.8%
Stock-Based Comp

$56M

Previous: $50M+12.0%

Revenue & EPS history

Paramount · Revenue · Quarterly

$6.28B

Q2 2020-9.4%vs Q2 2019
Beat estimate in 4 of 6 quarters(67%)
ActualEstimate

Revenue by segment

Paramount · $2.93B total across 2 segments · Q2 2020

  • TV Media
    $2.29B
  • Filmed Entertainment
    $647M

Forward guidance

ViacomCBS is on track for super service relaunch. In July, ViacomCBS unveiled the first major step in transforming CBS All Access into a rebranded super service and remains on track to relaunch this differentiated streaming product in early 2021.

Tailwinds

  • ViacomCBS signed a comprehensive, multiplatform partnership with Verizon, spanning pay TV, connected television and mobile.
  • The company announced a new deal with YouTube TV, which renewed CBS and Showtime early and brought Viacom’s cable networks to the service.
  • ViacomCBS announced a multi-year renewal with DISH and Sling TV, marking its third crosscompany renewal.
  • The company also continued to benefit from strong reverse compensation and recently signed agreements with Sinclair and Cox.
  • ViacomCBS unveiled the first major step in transforming CBS All Access into a rebranded super service and remains on track to relaunch this differentiated streaming product in early 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.8%

Avg return

Earnings day

-1.6%

Avg return

5 days after

-2.7%

Avg return

30 days after

60%

24 / 40 earnings

Positive

+10.4%

Q3 2023

Best reaction

-28.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%-0.1%-6.5%
Q4 2025+10.0%+22.5%-13.5%
Q3 2025-0.5%-2.4%+3.6%
Q2 2025-5.5%-11.7%+10.5%
Q1 2025+2.2%+1.1%+2.1%
Q4 2024+0.2%+2.3%+3.0%
Q3 2024-4.0%-3.2%-4.7%
Q2 2024-2.4%-1.6%-3.5%
Q1 2024+2.9%+8.2%-1.8%
Q4 2023-1.7%-8.4%+4.6%
Q3 2023+10.4%+18.9%+46.1%
Q2 2023+2.9%-2.3%-14.3%
Q1 2023-28.4%-27.8%-32.7%
Q4 2022-4.2%-6.6%-19.7%
Q3 2022-12.4%-14.6%+6.3%
Q2 2022+1.1%-1.4%-7.7%
Q1 2022-1.3%-7.8%+3.8%
Q4 2021+2.7%-19.0%+5.3%
Q3 2021-4.4%-5.5%-17.3%
Q2 2021+7.1%+5.1%+6.4%
Q1 2021-2.4%+1.0%+6.6%
Q4 2020+1.9%+4.3%-25.1%
Q3 2020-6.4%-3.5%+18.1%
Q2 2020+3.4%+2.0%+10.6%
Q1 2020+10.3%+22.6%+66.8%
Q4 2019-17.9%-28.9%-66.4%
Q2 2019-17.9%-28.9%-66.4%
Q3 2019-3.6%-1.6%-3.6%
Q1 2019-1.4%-5.2%-5.6%
Q4 2018+3.1%+4.3%-2.9%
Q2 2018+3.1%+4.3%-2.9%
Q3 2018+2.0%+0.8%-5.5%
Q1 2018+9.1%+5.5%+2.5%
Q4 2017+1.6%-0.5%-9.3%
Q2 2017+1.6%-0.5%-9.3%
Q3 2017+2.8%+2.4%+3.7%
Q1 2017+0.6%+0.2%-3.4%
Q2 2016+0.4%+2.6%+2.3%
Q4 2016+0.4%+2.6%+2.3%
Q3 2016+0.6%+4.7%+9.1%
Q1 2016
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Q4 2008
Q2 2008

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