ViacomCBS reported its first quarterly earnings as a combined company Thursday, revealing it had significantly missed Wall Street’s expectations with its fourth-quarter 2019 earnings.
Wall Street forecast earnings per share (EPS) of $1.44 on $7.36 billion in revenue, according to a consensus estimate compiled by Yahoo Finance. On Thursday, ViacomCBS actually reported EPS of 97 cents on $6.871 billion in revenue, down from 7.092 billion in revenue for the comparable 2018 quarter.
The now-combined company’s Q4 was marred by a soft box office, cord-cutting and a decline in political advertising.
“In less than three months since completing our merger, we have made significant progress integrating and transforming ViacomCBS,” president and CEO Bob Bakish said. “We see incredible opportunity to realize the full power of our position as one of the largest content producers and providers in the world. This is an exciting and valuable place to be at a time when demand for content has never been higher, and we will use our strength across genres, formats, demos and geographies to serve the largest addressable audience, on our own platforms and others.
In 2020, our priorities are maximizing the power of our content, unlocking more value from our biggest revenue lines and accelerating our momentum in streaming. With this as a backdrop, we’ve set clear targets for the year and are providing increased transparency around our business to demonstrate ViacomCBS’ ability to create shareholder value today, as we continue evolving and growing our business for tomorrow.”
ViacomCBS stock closed Wednesday afternoon at $35.67 per share, up 57 cents from where it opened that morning. The regular trading day for the U.S. stock markets open at 9:30 a.m. ET.
As TheWrap reported earlier this month, ViacomCBS is planning the launch of a streaming service that would combine CBS All Access with the rest of its assets, including Paramount, Pluto TV and Viacom’s stable of channels. The company is also expected to enact two rounds of layoffs soon, with the first set to come as early as Feb. 26 — a little less than three months after Viacom and CBS closed their merger, bringing the two companies back together for the first time since 2006.
In August of last year, when the two first reached their merger agreement, Viacom and CBS said that the merger would result in cost savings of $500 million.
Next month, former NBCU studio executive George Cheeks will take over as CEO of CBS assets, replacing Joe Ianniello who had filled the role since Les Moonves’ departure in the fall of 2018.
Bakish and other ViacomCBS executives will host a conference call at 8:30 a.m. ET to discuss the quarter and full year earnings in greater detail.
More to come…