ViacomCBS Inc Class A (NASDAQ: VIACA) stock fell over 1.9% on 25^th Feb, 2021 (as of 12:17:29 UTC-5; Source: Google finance) after the company reported lower-than-expected quarterly revenue, as the COVID-19 pandemic cut deeper into the media company’s revenue despite steady demand for its streaming services CBS All Access and Showtime. During the fourth quarter, Global streaming subscribers grew to about 30 million, up 56% year-over-year and Domestic streaming subscribers up 71% year-over-year to 19.2 million. Pluto TV grew its global monthly active users (MAUs) to 43M, which represents an increase of 80% year-over-year. Pluto TV’s domestic MAUs increased to 30.1M, up 34% year-over-year, which has more than doubled its advertising revenue in the quarter. Internationally, Pluto TV MAUs grew to 12.9M, including expanding in Spain and Brazil during the fourth quarter.

VIACA in the fourth quarter of FY 20 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of $1.01, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3 percent to $6.87 billion in the fourth quarter of FY 20, missing the analysts’ estimates for revenue of $6.95 billion. Affiliate revenue rose 13% year-over-year, on the back of strong growth in streaming subscription revenue, higher reverse compensation and retransmission fees, as well as expanded distribution. Advertising revenue rose 4% year-over-year, driven by higher streaming advertising and political advertising sales, which more than offset the adverse effects of COVID-19. Content licensing revenue declined by 3% year-over-year, due to a lower volume of licensing due to COVID-related production delays.

Moreover, in the fourth quarter, Global streaming & digital video revenue gre 71% year-over-year to $888M, driven by 74% growth in streaming subscription revenue and 69% streaming advertising revenue growth. Domestic streaming & digital video revenue grew from 56% in Q3 to 72% in Q4, resulting in revenue of $845M. For Cable Networks, the company reported 11% year-over-year growth in Q4 2020 revenue, driven by growth in content licensing, affiliate and advertising revenue. The Adjusted OIBDA grew 1% year-over-year of the segment due to the increase in revenue and savings from restructuring activities, which was mostly offset by increased expenses for programming, participations, advertising and promotions, including to support the growth of the company’s streaming services. In Filmed Entertainment, Q4 2020 revenue fell 3% year-over-year, due to the decline in theatrical revenue, partially offset by growth in licensing and home entertainment revenue.