ViacomCBS updated its fiscal outlook for the year in a filing to the U.S. Securities and Exchange Commission on Thursday (March 26), stating it expects the impacts of COVID-19 – from the postponement of theatrical releases to production delays — to be “material” to the newly-merged company’s financial standing.
The “magnitude” of the impacts will depend on the duration and extent of the pandemic, ViacomCBS reported in its filing, in addition to the “impact of federal, state, local and foreign governmental actions and consumer behavior.”
“Due to the evolving and uncertain nature of this situation, we are not able to estimate the full extent of the negative impact on ViacomCBS’ operating results, cash flow and financial position — including advertising and filmed entertainment revenues– particularly over the near to medium term,” the company stated.
As of March 26, it has not drawn from its US$3.5 billion revolving credit facility.
ViacomCBS reports increased viewership across its broadcast and cable properties, and is “utilizing its deep library of content to mitigate in part the impact of those delays.”
The media conglomerate is also working proactively to offset a portion of anticipated revenue losses through “cost-saving initiatives.”
It still expects to achieve US$750 million of “full run-rate merger related cost synergies” over the next three years, in addition to garnering around 16 million domestic streaming subscribers in pay and approximately 30 million monthly active users on Pluto TV in 2020.