Paramount Global (NASDAQ: PARA, PARAA) today (November 8) announced financial results for the third quarter ended September 30, 2024. The full press release and other earnings material can be viewed on the Paramount investor relations website at ir.paramount.com. A audio replay of Paramount's earnings call is also be available to listen to.
PARAMOUNT REPORTS Q3 2024
EARNINGS RESULTS
★ Meaningful Progress Advancing Strategic Goals
– Significant Improvement in Direct-To-Consumer: Adjusted OIBDA Improved $287 Million Year-Over-Year to $49 Million
– Continued Momentum at Paramount+: Revenue Growth of 25% Year-Over-Year and 3.5 Million Subscriber Additions in the Quarter
– Streamlined Organization: Advancing $500 Million in Annual Run Rate Cost Savings
★ Skydance Transactions Expected to Close in First Half of 2025
STATEMENT FROM GEORGE CHEEKS, CHRIS MCCARTHY & BRIAN ROBBINS, CO-CEOS
"Our hit content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers, solidifying our position as the #4 global SVOD service. Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters, and, across the company, we continue to successfully execute non-content cost reductions that will result in $500 million in annual run rate savings. With two very strong quarters under our belt, it’s evident that we have clear momentum and that our plan is working thanks to our very talented teams and creative partners."
DIRECT-TO-CONSUMER
OVERVIEW
DTC profitability improved significantly year-over-year. Sports, including the return of the NFL and UEFA, originals like Tulsa King, which saw the biggest global debut in platform history for season 2, and Mayor of Kingstown, as well as post-theatrical releases, such as A Quiet Place: Day One and IF, all drove acquisition in the quarter. Pluto TV continues to benefit from strong engagement resulting in increased monetization.
Q3 FINANCIALS
▪ DTC revenue increased 10% year-over-year.
– DTC subscription revenue grew 7%, driven by year-over-year subscriber growth and pricing increases for Paramount+.
– DTC advertising revenue rose 18%, reflecting growth from Paramount+ and Pluto TV.
– Paramount+ revenue grew 25%, driven by year-over-year subscriber growth and ARPU expansion.
▪ Paramount+ subscribers increased 3.5 million in the quarter to 72 million.
▪ Paramount+ global ARPU expanded 11% year-over-year.
▪ DTC adjusted OIBDA increased $287 million year-over-year to $49 million, reflecting revenue growth and cost efficiencies.
TV MEDIA
OVERVIEW
TV Media benefited from a powerful combination of sports, news and entertainment. CBS live news channels saw strong growth in minutes viewed year-over-year, The Daily Show continued to grow across streaming, linear and social platforms, MTV’s Video Music Awards had its biggest audience in four years, and The Challenge delivered its highest share in franchise history.
Q3 FINANCIALS
▪ TV Media revenue decreased 6% to $4.3 billion, primarily driven by lower affiliate revenue and fluctuations in licensing revenue.
– TV Media advertising revenue decreased 2%, reflecting declines in the linear advertising market, partially offset by higher political advertising, and the recognition of revenue underreported by an international sales partner in prior periods.
– TV Media affiliate and subscription revenue decreased 7%, driven by subscriber declines and a 2-percentage point decrease from the absence of pay-per-view boxing events, partially offset by price
increases.
– TV Media licensing and other revenue decreased 12%, reflecting a lower volume of licensing in the secondary market.
▪ TV Media adjusted OIBDA decreased 19% to $936 million.
FILMED ENTERTAINMENT
OVERVIEW
Paramount Pictures’ diverse film slate continued to deliver with the success of A Quiet Place: Day One, which set a franchise record for the biggest opening at the global box office and has grossed $261 million worldwide to date. Transformers One has grossed $127 million at the global box office to date.
Q3 FINANCIALS
▪ Filmed Entertainment revenue decreased 34% to $590 million.
– Theatrical revenue decreased 71%, reflecting the number and timing of releases in the quarter compared to the prior year.
– Licensing and other revenue decreased 6%, as lower revenue from home entertainment and the licensing of film library titles were partially offset by higher studio facility revenue compared to last year, which was impacted by the labor strikes.
▪ Filmed Entertainment adjusted OIBDA increased $52 million versus the prior year period, which was impacted by the labor strikes.
SKYDANCE TRANSACTIONS
Completion of the Skydance transactions is subject to regulatory approvals and customary closing conditions. The transactions are anticipated to close in the first half of 2025. Until then, Paramount continues to operate in the normal course of business.
ABOUT PARAMOUNT
Paramount (NASDAQ: PARA; PARAA) is a leading global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. The company holds one of the industry’s most 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
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This communication contains both historical and forward-looking statements, including statements related to our future results, performance and achievements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “may,” “could,” “estimate” or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: risks related to our streaming business; the adverse impact on our advertising revenues as a result of advertising market conditions, changes in consumer viewership and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries, including cost increases; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to our ongoing changes in business strategy, including investments in new businesses, products, services, technologies and other strategic activities; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; damage to our reputation or brands; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and content; liabilities related to discontinued operations and former businesses; risks related to environmental, social and governance (ESG) matters; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; domestic and global political, economic and regulatory factors affecting our businesses generally; disruptions to our operations as a result of labor disputes; the inability to hire or retain key employees or secure creative talent; volatility in the prices of the Companyʼs common stock; potential conflicts of interest arising from our ownership structure with a controlling stockholder; business uncertainties, including the effect of the Skydance transactions on the Companyʼs employees, commercial partners, clients and customers, and contractual restrictions while the Skydance transactions are pending; prevention, delay or reduction of the anticipated benefits of the Skydance transactions as a result of the conditions to closing the Skydance transactions; the Transaction Agreementʼs limitation on our ability to pursue alternatives to the Skydance transactions; risks related to a failure to complete the Skydance transactions, including payment of a termination fee and negative reactions from the financial markets and from our employees, commercial partners, clients and customers; risks related to change in control or other provisions in certain agreements that may be triggered by the Skydance transactions; litigation relating to the Skydance transactions potentially preventing or delaying the closing of the Skydance transactions and/or resulting in payment of damages; challenges realizing synergies and other anticipated benefits expected from the Skydance transactions, including integrating the Companyʼs and Skydanceʼs businesses successfully; potential unforeseen direct and indirect costs as a result of the Skydance transactions; any negative effects of the announcement, pendency or consummation of the Skydance transactions on the market price of the Companyʼs common stock and New Paramount Class B Common Stock; and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this report, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
***
