Paramount Global (NASDAQ: PARA, PARAA) today (February 28) announced financial results for the fourth quarter and full year ended December 31, 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 Q4 AND FULL YEAR 2023 EARNINGS RESULTS
★ Paramount+ Increased Revenue 69% Year-Over-Year in Q4 and Reached 67.5 Million Subscribers; Global ARPU Expanded 31%
★ DTC Adjusted OIBDA Improved Year-Over-Year for the 3rd Consecutive Quarter; Full Year DTC Losses Peaked in 2022, a Year Ahead of Plan
★ Total Affiliate and Subscription Revenue Grew 13% as the Combination of Linear and Streaming Continues to Deliver Growth
★ Generated $558 Million of Net Operating Cash Flow and $443 Million of Free Cash Flow in Q4
★ Company Expects to Deliver Significant Total Company Earnings Growth in 2024 and Reach Paramount+ Domestic Profitability in 2025
STATEMENT FROM BOB BAKISH, PRESIDENT & CEO
"Our disciplined execution and strong content offering drove our results in 2023, as we continue to
evolve our business for profitable growth in 2024 and beyond. In Q4, Paramount+ revenue increased
69%, DTC Adjusted OIBDA improved for the third consecutive quarter, and we now expect to reach
domestic Paramount+ profitability in 2025 – a significant milestone. Looking ahead, we continue to
be focused on maximizing the return on our content investments and scaling streaming, while
transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum
we’ve had across every platform in 2024, demonstrating the power of our strategy and assets"
DIRECT-TO-CONSUMER
OVERVIEW
Paramount continued to make progress on the path to streaming profitability in 2023 with strong growth in engagement and revenue, and improved operational efficiency. DTC remains on track to significantly improve earnings in 2024, driven by greater engagement and increased monetization.
Q4 FINANCIALS
- Revenue increased 34% year-over-year.
- Subscription revenue grew 43%, driven by subscriber growth and pricing increases for Paramount+.
- Advertising revenue rose 14%, reflecting growth from Paramount+ and Pluto TV.
- Global viewing hours across Paramount+ and Pluto TV grew 27%.
- Paramount+ revenue grew 69%, driven by subscriber growth and ARPU expansion.
- Paramount+ subscribers reached 67.5 million, with 4.1 million net additions in the quarter.
- Paramount+ global ARPU expanded 31% year-over-year.
- Adjusted OIBDA improved $85 million year-over-year as higher revenue more than offset increased costs to support the growth of Paramount+.
TV MEDIA
OVERVIEW
TV Media revenue and earnings in the quarter were driven by the powerful combination of entertainment and sports, including the most-watched regular season of the NFL on CBS since 1998. Additionally, Paramount cable networks delivered 4 of the top 5 adult entertainment series in 2023.
Q4 FINANCIALS
- Revenue declined 12% year-over-year.
- Affiliate and subscription revenue decreased 1% principally reflecting the impact from subscriber declines, largely offset by pricing increases.
- Advertising revenue decreased 15%, reflecting continued softness in the global advertising market and a 5-percentage point impact from lower political advertising. Advertising revenue in the quarter was also
- impacted by the strikes.
- Licensing and other revenue declined 25%, including the impact from the strikes on content available for licensing
- Adjusted OIBDA was $1.1 billion – a 12% decrease – reflecting the revenue decline, partially offset by lower costs for content and marketing, including from the impact of the strikes
FILMED ENTERTAINMENT
OVERVIEW
Filmed Entertainment continued to drive considerable value across the company, including in theatrical, streaming and licensing. In 2023, Paramount Pictures films generated $2 billion at the global box office and delivered five #1 debuts at the domestic box office.
Q4 FINANCIALS
- Revenue decreased 31% year-over-year primarily due to lower licensing revenue.
- Theatrical revenues decreased $19 million, reflecting the mix of film releases in each period.
- Licensing and other revenues decreased 32%, reflecting the comparison to the success of Top Gun: Maverick in the digital home entertainment market and the licensing of Halloween Ends in 2022, and lower revenue from studio rentals and production services as a result of the strikes.
- Adjusted OIBDA decreased $63 million, reflecting impacts from the strikes and the comparison to the licensing of Halloween Ends
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
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Notes:
- Paramount+ was the #1 premium streaming service in U.S. sign ups in Q4 and since launch
- Paramount had five #1 domestic box office debuts: Scream VI, Dungeons & Dragons: Honor Among Thieves, Transformers: Rise of the Beasts, Mission: Impossible - Dead Reckoning Part One, and PAW Patrol: The Mighty Movie.
Stream a Mountain of Entertainment, including your Nickelodeon favorites on Paramount+! Try it FREE at ParamountPlus.com!
Originally published: February 28, 2024.
Source: PR Newswire.
