ViacomCBS said its second quarter net income tumbled amid declines in advertising revenue at its cable and broadcast outlets, the latest sign of the toll the coronavirus pandemic has taken on the operations of U.S. media companies.
Revenue fell 12% to $6.28 billion, compared with $7.14 billion in the year-earlier period. Advertising revenue fell 27%, the company said, to $1.93 billion, compared with nearly $2.65 billion in the year-earlier period.
Just as rivals like Walt Disney and Discovery have done in recent days, ViacomCBS emphasized the performance of its streaming-video operations, to which consumer interest is migrating. ViacomCBS said revenue from streaming and digital video rose 25% to $489 million, largely driven by increased subscriptions. Still, the present figure represents a small portion of the company’s overall revenue stream.The company’s second-quarter performance exceeded Wall Street estimates.
“Despite the impact of COVID-19 on revenue in the quarter, we’re successfully managing through the effects of the pandemic, reaffirming the strength of our combined operations,” said Bob Bakish, ViacomCBS’ CEO, in a statement.
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