Tuesday, May 03, 2022

Paramount Global Reports Q1 2022 Earnings Results

Paramount Global (NASDAQ: PARA, PARAA) today (May 3) announced financial results for the first quarter ended March 31, 2022. The full press release and other earnings material can be viewed on the Paramount investor relations website at ir.paramount.com.

Alongside today's earnings report, Paramount Global conducted a conference call with investors. An audio replay of the call is available beginning in the Events, Webcasts & Annual Meetings section of Paramount's Investors homepage, and at 866-813-9403 using access code 337748.


« Continued Momentum in Direct-to-Consumer (DTC), With Strong Consumer Demand in the Quarter
– Grew Total Global Streaming Subscribers to Over 62M, Driven by 6.8M Paramount+ Subscriber Additions
– Expanded Pluto TV Global Monthly Active Users (MAUs) to Nearly 68M
« Robust Monetization in DTC, With Revenue up 82% Year-Over-Year to $1.1 Billion
– Achieved 95% Growth in DTC Subscription Revenue, Fueled by Paramount+
– Generated a 59% Increase in DTC Advertising Revenue, Driven by Pluto TV
« Ongoing Strength at TV Media and Filmed Entertainment Year-To-Date
– CBS is the #1 Network For the 14th Consecutive Season
– Paramount Pictures Opened Four #1 Films in a Row; Next Up, Top Gun Maverick

STATEMENT FROM BOB BAKISH, PRESIDENT & CEO: "The first quarter once again demonstrated the power and potential of Paramount’s unique assets and the company’s continued momentum. Our differentiated playbook – including a broad content line up, a streaming business model that spans ad-supported and subscription, and a global portfolio that links streaming with theatrical and television – drove strength across our entire ecosystem, including DTC revenue growth of 82% and 6.8 million Paramount+ subscriber additions. Our strategy is working and our execution is strong, as we remain focused on delivering a great experience for consumers and a compelling financial model to our shareholders.


• Total company revenue decreased 1%, which included an impact of 6 percentage points from CBS’s broadcast of Super Bowl LV in the year ago period. Excluding the Super Bowl comparison, Q1 revenue grew 5%.

*During 4Q20, Paramount entered into an agreement to sell Simon & Schuster. Simon & Schuster has been presented as a discontinued operation in the company’s consolidated financial statements for all periods. 



• Global streaming subscribers rose to more than 62M, adding 6.3M total subscribers in the quarter.

– Subscriber additions were driven by Paramount+, which added 6.8M subscribers in the quarter, bringing Paramount+ total subscribers to almost 40M.

– Other DTC services subscribers declined, primarily due to timing of new programming.

• During the quarter, diverse content on Paramount+ drove strong global consumption, acquisition and engagement.

– Average titles consumed and hours per active sub improved quarter-over-quarter across all demos highlighting improved engagement, content exploration and diversification.

– Domestically, Paramount+ saw strong engagement and consumption from a variety of content, including Halo, 1883, Star Trek Picard, live events and the NFL.

– Internationally, Acapulco Shore was a top acquisition and engagement driver for the service.

• Pluto TV grew global Monthly Active Users (MAUs) to nearly 68M.

– Pluto TV gained broad distribution on T-Mobile via T-Mobile Tuesdays, giving customers exclusive access to new content and original series.

– Grew total global viewing hours by double digits year-over-year.

– Launched over 102 new channels internationally, totaling more than 1,000 global channels.


• DTC revenue increased 82% year-over-year.

– Subscription revenue grew 95% year-over-year, reflecting paid subscriber growth on Paramount+.

– Advertising revenue increased 59% year-over-year, reflecting growth from Pluto TV and Paramount+ driven by increased pricing and impressions on both services.

• Adjusted OIBDA decreased $307M year-over-year, reflecting increased investment in streaming services.



• In Q1, Paramount’s family of networks delivered the #1 share of views among leading media families.

– CBS was the most watched broadcast network for the 14th consecutive season.

-- At CBS, ratings for the NFL Playoffs and NCAA Tournament were up double digits year-over-year and CBS had the top two scripted series, #1 new series, #1 new comedy, #1 news program, and continues to be the most-watched network in Daytime and Late Night.

– Paramount’s cable portfolio had the #1 share of viewing in every key demo.

-- MTV Entertainment Group had the #1 cable series with Yellowstone and 4 of the top 10 series among P18-34.

-- Nickelodeon was the #1 network with kids, and had 9 of the top 10 shows among K2-11.

-- Comedy Central was the #1 Cable Entertainment network among P18-34.


• Revenue declined 6% year-over-year, which included an impact of 8 percentage points from the comparison to CBS’ broadcast of Super Bowl LV in the year ago period, partially offset by higher licensing and affiliate revenue. Excluding the impact of the Super Bowl, TV Media revenue grew 2%.

– Advertising revenue decreased 13% year-over-year, primarily reflecting an impact of 17 percentage points from the comparison against CBS’ broadcasts of Super Bowl LV in the prior-year quarter. Excluding the impact of the Super Bowl, TV Media advertising revenue grew 4%.

– Affiliate and subscription revenue grew 1% year-over-year, as higher revenues from rate increases and expanded vMVPD distribution were somewhat offset by MVPD subscriber declines.

• Adjusted OIBDA decreased 13% year-over-year, primarily driven by the comparison to the Super Bowl broadcast in the prior-year period, and higher costs in 2022 associated with more original programming. 


Top 3 Dramas
#1 FBI
#3 Blue Bloods

Top 6 Comedies
#1 Young Sheldon
#2 Ghosts
#3 The Neighborhood
#4 Bob Hearts Abishola
#5 United States of Al
#6 B Positive

#1 News Program
60 Minutes

#1 in Late Night
The Late Show with Stephen Colbert

Top 3 New Programs
#1 Ghosts
#2 FBI: International
#3 NCIS: Hawai'i

Source: Nielsen Media Research


#1 Portfolio in Share of Viewing Among Key Demos
P2+, P2-17, P12-34, P18-34, P18-49, P25-54, P2-49

The Most Top 25 Cable Networks
P18-34, P18-49

#1 Network for Kids

Top 2 Kids Programs

9 of the Top 10 Cable Series
Among K2-11

Cable's Most-Watched Telecast Since 2017
Paramount Network: Yellowstone Season 4 finale

#1 Premium Scripted Original
Showtime: Dexter: New Blood

#1 Cable Comedy Series
Comedy Central: South Park (Among key adult demos)

Source: Nielsen Media Research



• Paramount Pictures has had a phenomenal start to the year, with three # 1 box-office hits during the quarter – Scream, Jackass Forever, The Lost City – and a fourth #1 in Q2 with Sonic The Hedgehog 2.


• Revenue declined 27% year-over-year, driven by lower licensing revenues, partially offset by the benefit of current quarter theatrical releases.

– Theatrical revenue increased $130M and includes revenues from the first quarter releases of ScreamJackass Forever and The Lost City while the prior-year period was impacted by the closure or reduced capacity of movie theaters in response to COVID-19.

– Licensing and other revenue decreased 42% year-over-year, primarily driven by the benefit in the prior-year period from the licensing of Coming 2 America and Tom Clancy’s Without Remorse.

• Adjusted OIBDA declined $216M in the quarter, due to increased marketing expense associated with in-quarter and future theatrical releases.


As of March 31, 2022, the company had $5.3B of cash on its balance sheet and a committed $3.5B revolving credit facility that remains undrawn.

▪ Repaid nearly $2B of notes and issued $1B of junior subordinated debt during the quarter.



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

This communication contains both historical and forward-looking statements, including statements related to our future results and performance. 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 initiatives; changes in consumer behavior, as well as evolving technologies, distribution platforms and packaging; the impact on our advertising revenues as a result of changes in consumer viewership, advertising market conditions and deficiencies in audience measurement; our ability to maintain attractive brands and our reputation, and to offer popular programming and other content; increased costs for content and other rights; competition for talent, content, audiences, subscribers, advertising and distribution; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and programming; risks related to our ongoing investments in new businesses, products, services and technologies, through acquisitions and other strategic initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of COVID-19 and other pandemics and measures taken in response thereto; domestic and global political, economic and regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of existing or inability to hire new key employees or secure creative talent; strikes and other union activity; potential conflicts of interest arising from our ownership structure with a controlling stockholder; 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 communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.


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Originally published: May 03, 2022.

Source: PR Newswire.

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