PARAMOUNT REPORTS Q3 2022 EARNINGS RESULTS
« Paramount+ Added 4.6M Subscribers and Grew Revenue 95%
– Total Global Direct-to-Consumer (DTC) Subscribers Rose to Nearly 67M
« Pluto TV Maintained its Lead as the #1 Free Ad-Supported Streaming TV Service In the U.S.
– Reached 72M Monthly Active Users (MAUs) Globally
– Grew Global Total Viewing Hours Strong Double Digits Year-Over-Year
« Paramount Pictures Extended its Impressive Theatrical Run in 2022
– Smile Delivered the Studio’s Sixth #1 Film Year-to-Date
– Top Gun: Maverick Became the #5 Domestic Movie of All Time
« Affiliate & Subscription and Theatrical Revenue Strength Drove 5% Increase in Total Company Revenue
– Affiliate & Subscription Revenue Grew 8%, Including 59% Growth in DTC Subscription Revenue
– Theatrical Revenue Increased 245%
– Advertising Revenue Declined 2%, Reflecting Macroeconomic Headwinds
STATEMENT FROM BOB BAKISH, PRESIDENT & CEO
"In the third quarter, Paramount continued to execute on our differentiated strategy anchored by our broad range of popular content, our diverse portfolio of platforms, and our truly global operating reach. That strategy continued to drive growth in subscriptions across our streaming platforms with Paramount+ adding 4.6M subscribers. Paramount Pictures also extended its stellar run with its sixth #1 film in 2022. Looking forward, we couldn’t be more excited about the array of sensational content coming to Paramount+ in the fourth quarter, as well as the launch of the service in France,
Germany, Austria and Switzerland."
DIRECT-TO-CONSUMER
Q3 HIGHLIGHTS
• Global DTC subscribers rose to nearly 67M.
– Reflects the addition of 4.7M DTC subscribers.
– Paramount+ subscribers grew to 46M, which reflects the addition of 4.6M subscribers and the removal of 1.9M Paramount+ subscribers, following the launch of SkyShowtime to replace Paramount+ in the Nordics.
• Paramount+ was the #1 streaming service in the U.S. in sign-ups and gross subscriber additions year-to-date according to Antenna’s September 2022 Report.
• Paramount+ subscriber growth was driven by launches in international markets as well as the start of the NFL season, UEFA Champions League, and the launch of the Walmart+ partnership.
– Internationally, HALO and Yellowstone were top acquisition drivers for the service and in Latin America, the English Premier League drove strong signups.
– Top Gun: Maverick to stream on Paramount+ by the end of the year.
• Pluto TV maintained its lead as the #1 free ad-supported streaming TV service in the U.S.
– Pluto TV became the first free ad-supported streaming TV service to represent a significant enough portion of TV viewing to be named in Nielsen’s monthly TV viewing Gauge report.
– Grew total global viewing hours strong double-digits year-over-year.
Q3 FINANCIALS
• DTC revenue increased 38% year-over-year.
– Subscription revenue grew 59% year-over-year to $863M, principally reflecting paid subscriber growth on Paramount+.
– Advertising revenue rose 4% year-over-year.
– Paramount+ revenue grew 95% year-over-year.
• Adjusted OIBDA decreased $145M year-over-year, reflecting investments in content, marketing and international expansion.
Q3 HIGHLIGHTS
• CBS had a strong start to the fall season, including:
– Top three new series — Fire Country, East New York and So Help Me Todd.
– 7 of the top 10 entertainment shows.
– The #1 spot in Late Night and Daytime across broadcast networks.
– The top 4 comedies with Young Sheldon, Ghosts, The Neighborhood and Bob Hearts Abishola.
• Paramount’s family of cable networks continued to grow share year-over-year.
– Adult cable series on Paramount networks accounted for 5 of the top 10 among audiences P18-34.
– Kids cable series on Nickelodeon accounted for 9 of the top 10 among audiences P2-11.
• Increased share of viewing year-over-year in a number of international markets, including Chile (Chilevision) and Australia (Network 10).
Q3 FINANCIALS
• Revenue declined 5% year-over-year.
– Advertising revenue decreased 3% year-over-year, as increases from political advertising and pricing only partially offset the impact from lower impressions and FX.
– Affiliate and subscription revenue declined 5% year-over-year, as rate increases only partially offset net pay television subscriber declines, and we restructured certain international affiliate agreements, which resulted in a shift of revenue from our pay television services to our DTC services.
– Licensing and other revenue declined 9% year-over-year driven by the comparison against several significant domestic licensing arrangements in the prior year.
• Adjusted OIBDA decreased 11% year-over-year, driven by the decline in affiliate and subscription revenue and lower profits from content licensing.
FILMED ENTERTAINMENT
Q3 HIGHLIGHTS
• Paramount Pictures achieved its sixth #1 box office film of the year with horror thriller Smile.
• Top Gun: Maverick became the #1 best-selling digital sell-through title in the U.S. in its first week of release.
Q3 FINANCIALS
• Revenue grew 48% year-over-year, led by the success of Top Gun: Maverick at the box office and in the digital home entertainment market.
• Adjusted OIBDA increased $65M in the quarter, reflecting the strong performance of Top Gun: Maverick.
BALANCE SHEET & LIQUIDITY
▪ As of September 30, 2022, the company had $3.4B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.
ABOUT PARAMOUNT
Paramount (NASDAQ: PARA; PARAA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, Paramount provides powerful capabilities in production, distribution and advertising solutions.
For more information about Paramount, please visit www.paramount.com and follow @ParamountCo on social platforms.
PARA-IR
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Stream a Mountain of Entertainment, including your Nickelodeon favourites on Paramount+! Try it FREE at ParamountPlus.com!
H/T: Seeking Alpha, PR Newswire.
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