ViacomCBS shares crashed Thursday morning, now down 15% at the 29-handle following a disastrous earnings report.
Shares are poised for the worst day in 11 years as the company posts Q4 revenue of $6.87 billion, below analysts’ estimates of $7.36 billion.
It reported a net loss from continuing operations of $273 million, or about 44 cents per share, from a profit of $884 million, or about $1.43 per share in 4Q18 (pre-merger).
Ad revenue slipped 2% over the quarter to $3.03 billion, hit by a decline in political ad spending.
ViacomCBS expects revenue to grow mid-single digits during the 2020 fiscal year.
The merger between Viacom and CBS was finalized in December, these media giants outlined how it would better prepare them for a fight against deep-pocketed players such as Netflix, Hulu, and Walt Disney.
ViacomCBS’ CEO Bob Bakish said the merger would allow a turnaround in both companies and lead to new revenue growth, yet none of the promises have yet to materialize.
Bakish in a statement hopes the turnaround can occur at some point in 2020 (otherwise, he's skating on thin ice): "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."
And we’re surprised that billionaire Michael Bloomberg’s insane amount of political ad spending has yet to boost the media giant.