Paramount Global (NASDAQ: PARA, PARAA) today (August 4) announced financial results for the second quarter ended June 30, 2022. The full press release and other earnings material can be viewed on the Paramount investor relations website at ir.paramount.com. A replay of Paramount's 2Q22 earnings call can also be listened to.
PARAMOUNT REPORTS Q2 2022 EARNINGS RESULTS
• Strength in Filmed Entertainment and Strong Direct-to-Consumer (DTC) Growth Propels 19% Rise in Total Company Revenue
• Paramount+ and Pluto TV Continue to Drive Subscriber and User Momentum
– Total Global DTC Subscribers Rose to Nearly 64M, which Reflects the Removal of 3.9M Russia Subscribers
– Paramount+ Added 4.9M Subscribers and Revenue Grew 120%
– Expanded Pluto TV Global Monthly Active Users (MAUs) to Nearly 70M, Extending its Lead as the #1 Free
• Ad-Supported Streaming TV Service in the U.S.
• Top Gun: Maverick Powered 126% Growth in Filmed Entertainment Revenue
– Surpassed Titanic to Become the Biggest Paramount Domestic Movie of All Time
– Five Paramount Pictures Movies Debuted #1 at the Box Office in the First Half of 2022
STATEMENT FROM BOB BAKISH, PRESIDENT & CEO
"Paramount continues to build momentum with the assets, strategy and ability to compete—and win. In Q2, we grew total company revenue by 19 percent and took market share in streaming, in broadcast TV, in box office and in upfront dollars, all while increasing our penetration of the most important growth market in media—streaming. At the heart of that growth was our hugely popular content—from the cultural phenomenon and #1 movie in the world, Top Gun: Maverick, to the most popular show in the country, Yellowstone. Our deep and growing library of valuable IP, coupled with the strength of our best-in-class assets, ensures we are well-positioned to continue to maximize value for our shareholders.
DIRECT-TO-CONSUMER
Q2 HIGHLIGHTS
• Global DTC subscribers rose to nearly 64M.
– Reflects the addition of 5.2M subscribers and the removal of 3.9M Russia
subscribers.
– Paramount+ subscribers grew to over 43M, which reflects the addition of 4.9M subscribers and the removal of 1.2M Russia subscribers.
• Paramount+ captured the most sign-ups, gross and net subscriber additions of any premium domestic streaming service in the quarter according to Antenna’s June 2022 Report.
• Paramount+ subscriber growth was partially driven by successful international market launches, including the UK, Ireland and South Korea.
• Paramount+’s broad content strategy continued to draw audiences in the quarter, including highly anticipated original series, movies, and sports.
– Paramount+ saw strong acquisition and engagement from a variety of content led by Halo, 1883, The Lost City, Sonic the Hedgehog 2, Jackass Forever, Star Trek: Strange New Worlds, and the UEFA Champions League.
– Both domestic and international hours watched per household demonstrated strong growth year-over-year.
• Pluto TV grew global Monthly Active Users (MAUs) to nearly 70M, continuing its lead as the #1 free ad-supported streaming TV service in the U.S.
– Grew total global viewing hours by double digits year-over-year for the second consecutive quarter.
– Expanded international presence, launching in the Nordics in partnership with Viaplay Group and announced partnership with Corus in Canada, which will launch later this year.
Q2 FINANCIALS
• DTC revenue increased 56% year-over-year.
– Subscription revenue grew 74% year-over-year to $830M, principally reflecting paid subscriber growth on Paramount+.
– Advertising revenue rose 25% year-over-year, reflecting growth from Paramount+ and Pluto TV, driven by increased impressions on both services.
– Paramount+ revenue grew 120%.
• Adjusted OIBDA decreased $302M year-over-year, reflecting increased investment in our DTC services.
TV MEDIA
Q2 HIGHLIGHTS
• In Q2, Paramount’s family of networks delivered the #1 U.S. Share of View among audiences P2-11 and P12-17.
– CBS was the most watched broadcast network for the 20th consecutive second quarter. The Network dominated the quarter with:
• The top three most-watched programs: NCIS, FBI and Blue Bloods.
• 7 of the quarter’s top 10 shows, as well as 18 of the top 30, more than all other networks combined.
• The top comedies, including Young Sheldon and Ghosts, both ranked within the top 10 programs overall.
– Paramount’s key domestic cable networks grew share year-over-year:
• 11 of 19 cable networks either maintained or grew share, including Comedy Central and Nickelodeon.
• Nickelodeon’s portfolio delivered its highest year-over-year share growth since Q2 2017.
• Nickelodeon was the #1 network in key kids demographics: K2-11 for the 28th consecutive quarter; K6-11 for the 23rd consecutive quarter.
• Paramount has the #1 portfolio among young audiences (Share of viewers, domestic, P2-11, P2-5, P6-11, P12-17)
Q2 FINANCIALS
• Revenue rose 1% year-over-year, reflecting growth in content licensing revenues, partially offset by lower advertising and affiliate revenues.
– Advertising revenue decreased 6% year-over-year, as pricing only partially offset the impact of lower linear impressions and FX.
– Affiliate and subscription revenue declined 3% year-over-year, driven by lower revenues in international markets, where we restructured key affiliate agreements, resulting in a shift of revenue from our pay television services to our DTC services.
– Licensing and other revenues grew 27% year-over-year.
• Adjusted OIBDA decreased 8% year-over-year, primarily driven by the lower advertising and affiliate revenues.
FILMED ENTERTAINMENT
Q2 HIGHLIGHTS
• Top Gun: Maverick has earned more than $1.3B to date at the box office globally and continues to draw audiences to theaters.
– In addition to being the most successful Paramount movie domestically, it is now in the top 10 domestic films of all-time.
• The Lost City and Sonic the Hedgehog 2 debuted number one at the box office, joining Scream, Jackass Forever and Top Gun: Maverick to total five number one films in the first half of the year, with Sonic 2 making history as the biggest video game movie opening of all-time.
Q2 FINANCIALS
• Revenue grew 126% year-over-year, led by the strong performance of current quarter theatrical releases.
– Theatrical revenue increased $630M, primarily driven by the releases of Top Gun: Maverick and Sonic the Hedgehog 2 in the quarter.
– Licensing and other revenue grew 27% year-over-year, primarily driven by the monetization of recent theatrical releases.
• Adjusted OIBDA increased $129M in the quarter, reflecting the strong performance of current year releases.
BALANCE SHEET & LIQUIDITY
▪ As of June 30, 2022, the company had $4.0B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.
ABOUT PARAMOUNT
Paramount Global (NASDAQ: PARA, PARAA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic studios, networks and streaming services, Paramount's portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. Paramount 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, the company 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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Originally published: August 04, 2022.
Source: PR Newswire.
