Paramount Global (NASDAQ: PARA, PARAA) today (November 2) announced financial results for the third quarter ended September 30, 2023. 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 will also be available to listen to once completed.
PARAMOUNT REPORTS Q3 2023 EARNINGS RESULTS
«Paramount+ Increased Revenue 61% and Reached More Than 63M Global Subscribers; Global ARPU Expanded 16%
«Global Viewing Hours Across Paramount+ and Pluto TV Grew 46%
«DTC Adjusted OIBDA Improved 31%; Company Now Forecasts DTC Losses Peaked in 2022
«Total Affiliate and Subscription Revenue Increased 14% as the Combination of Linear and Streaming Continues to Yield Growth; Total Company Revenue Grew 3%
STATEMENT FROM BOB BAKISH, PRESIDENT & CEO
"We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business. In Q3, we successfully grew Direct-to-Consumer revenue and Paramount+ subscribers while narrowing DTC losses over 30%. In fact, we now expect DTC losses in 2023 will be lower than in 2022 – meaning streaming investment peaked ahead of plan. Looking ahead, we remain on the path to achieving significant total company earnings growth in 2024."
DIRECT-TO-CONSUMER
OVERVIEW
Paramount continues to progress on the path to streaming scale and profitability. DTC remains on track to drive significant earnings improvement in 2024.
Q3 FINANCIALS
- Revenue increased 38% year-over-year.
- Subscription revenue grew 46% to $1.3B, driven by subscriber growth and pricing increases for Paramount+, and revenue from pay-per-view events.
- Advertising revenue rose 18%, reflecting growth from Paramount+ and Pluto TV.
- Global viewing hours across Paramount+ and Pluto TV grew 46%.
- Paramount+ revenue grew 61%, driven by subscriber growth and increased advertising revenue.
- Paramount+ subscribers reached more than 63M, with 2.7M net additions in the quarter.
- Paramount+ global ARPU expanded 16% year-over-year.
- Adjusted OIBDA improved 31% as higher revenue more than offset incremental costs to support the growth of Paramount+.
- The company now forecasts full-year DTC losses in 2023 will be lower than in 2022, with DTC losses in Q4’23 similar to Q4’22.
TV MEDIA
OVERVIEW
TV Media contributed significant revenue and earnings, driven by the strong performance of CBS content spanning live sports, news, and entertainment. Notably, the NFL on CBS is delivering its best season viewership in years.
Q3 FINANCIALS
- Revenue was $4.6B.
- Affiliate and subscription revenue was substantially flat. Lower affiliate revenue was offset by revenue from pay-per-view events.
- Advertising revenue decreased 14%, reflecting continued softness in the global advertising market and lower political advertising.
- Licensing and other revenue decreased 12%, driven by lower revenue from original content produced for third parties. Content available for licensing was impacted by temporary production shutdowns as a result of labor strikes.
- Adjusted OIBDA was over $1.1B equating to a 25% Adjusted OIBDA margin.
- Adjusted OIBDA decreased 7%, reflecting the revenue decline, partially offset by lower costs for content and marketing.
FILMED ENTERTAINMENT
OVERVIEW
Filmed Entertainment continued to drive significant value across the company, including theatrical, streaming, and licensing. Q3 included the extensions of multiple popular franchises in Mission: Impossible – Dead Reckoning Part One, Teenage Mutant Ninja Turtles: Mutant Mayhem, and PAW Patrol: The Mighty Movie.
Q3 FINANCIALS
- Revenue increased 14% year-over-year.
- Theatrical revenue grew 63%, primarily driven by the releases of Mission: Impossible – Dead Reckoning Part One and Teenage Mutant Ninja Turtles: Mutant Mayhem.
- Debut of PAW Patrol: The Mighty Movie drove consumption of the broader franchise, with the PAW Patrol library serving as a top engagement driver on Paramount+.
- Licensing and other revenue decreased 7%, reflecting the prior year success of Top Gun: Maverick in the digital home entertainment market and lower revenue from studio rentals and production services as a result of labor strikes.
- Adjusted OIBDA was a loss of $49M. The decrease from the prior year reflects the timing and mix of theatrical releases in each year as well as incremental costs incurred during production shutdowns and lower revenue from studio rentals and production services.
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, Showtime Networks, 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
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Paramount+ was the #1 premium streaming service in U.S. signups in Q3 and since launch.
Stream a Mountain of Entertainment, including your Nickelodeon favorites on Paramount+! Try it FREE at ParamountPlus.com!
H/T: The Hollywood Reporter; Special thanks to @916786wc for the news!
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