ViacomCBS said third-quarter profit declined as it invested in more content for streaming audiences, but noted that its revenue from just that consumer activity was on the rise, with 4.3 million new subscribers to its broadband outlets added during the period.
The New York owner of the CBS broadcast network, the Showtime premium cable network and outlets such as Nickelodeon and Comedy Central said third-quarter net income fell to $538 million, or 80 cents a share, compared with $615 million, or $1.00 a share, in the year-ago period, as it invested in Paramount Plus, its new subscription-based streaming hub. But revenue during the period increased 13% to $6.6 billion, compared with $5.8 billion in the year-earlier period, driven by small gains in advertising and distribution fees and growing subscriptions and advertising for Paramount Plus, Pluto and other broadband venues.
“We added 4.3 million global streaming subscribers, raising our total to nearly 47 million, driven by the scaling of the diverse content offering on Paramount Plus. Looking forward, we’re thrilled about the fresh array of content coming to Paramount Plus in the next few months and can’t wait to share it with our global audience,” said ViacomCBS CEO Bob Bakish in a prepared statement. “Our strategy is clearly working and we’ll continue to use the power of global content, distribution and market expansion to drive scale.”