Tuesday, August 08, 2023

Paramount Global Reports Q2 2023 Earnings Results

Paramount Global (NASDAQ: PARA, PARAA) today (August 7) announced financial results for the second quarter ended June 30, 2023. 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 earnings call can also be listened to.

Paramount Mountain


« Direct-to-Consumer (DTC) Continued to Scale with Increased Revenue and Engagement
– Paramount+ Grew Revenue 47% and Reached Approximately 61M Subscribers
– Paramount+ and Pluto TV Global Viewing Hours Increased 35% Year-Over-Year
– DTC Advertising Revenue Increased 21%

« TV Media Delivered Substantial Adjusted OIBDA of $1.2B
– CBS Claimed the #1 Spot in Broadcast for the 15th Straight Season; Produced Eight of the Top 10 Most Watched Series, Including the Top Four

« Multiplatform Strategy Drove Growth and Efficiencies
– Total Affiliate and Subscription Revenue Increased 12% Year-Over-Year as the Combination of Linear and Streaming Continues to Yield Net Growth
– Licensing Revenue Grew 11% Benefiting from Demand for Hit Content
– Paramount+ With Showtime Launched on June 27 Delivering Enhanced Value for Linear and Streaming Customers and Driving DTC Efficiency


"In Q2, we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024. Notably, Paramount+ revenue grew 47%, total DTC ad revenue increased 21%, and global viewing hours on Paramount+ and Pluto TV were up 35% year-over-year. And despite the environment, TV Media continued to contribute significant earnings. As we look forward, we will continue to be guided by our content-first approach and seek to maximize its value across platforms and revenue streams, while also operating with the utmost efficiency through this year of peak streaming investment."



Paramount continues to progress on the path to streaming scale and profitability. In Q2, strong revenue growth was driven by subscriber growth and improvements in engagement and monetization. DTC remains on track to drive significant earnings improvement in 2024.


▪ Revenue increased 40% year-over-year. 
– Subscription revenue grew 47% to over $1.2B, driven by subscriber growth on Paramount+. 
– Advertising revenue rose 21%, driven by higher impressions for Paramount+ and Pluto TV.
– Paramount+ revenue grew 47%, driven by subscriber growth and increased advertising revenue.
▪ Paramount+ subscribers reached approximately 61M, with 0.7M additions in the quarter.
▪ Adjusted OIBDA increased $21M as higher revenues more than offset incremental costs to support the growth of Paramount+

Paramount+ was the #1 premium streaming service in U.S. sign ups in Q2 and since launch. Source: Antenna



TV Media contributed significant revenue and earnings, benefiting from diversification of revenue streams, pricing strategies, and focused cost management. TV Media continues to yield revenue performance that outpaces audience trends


▪ Revenue was $5.2B: 
– Affiliate and subscription revenue declined 2%, primarily reflecting the impact from subscriber declines, partially offset by pricing increases.
– Advertising revenue decreased 10%, reflecting continued softness. In the national domestic market, pharma, retail, movies, and travel are showing signs of strength.
– Licensing and other revenue increased 17%.
▪ Adjusted OIBDA was $1.2B equating to a 23% Adjusted OIBDA margin.
– Adjusted OIBDA decreased 13%, driven by the decline in advertising and affiliate revenues, partially offset by higher profits from licensed content.

CBS finished 22-23 season as most-watched netform for 15th consecutive season:

#1 Broadcast Series: NCIS
Top New Series: Fire Country
Top Comedy: Young Sheldon
Top News Program: 60 Minutes

Source: Nielsen Media Research



Filmed Entertainment drives significant value across the company including theatrical, streaming, and licensing. Q2 included the extension of the popular franchise Transformers with the #1 box office debut of Transformers: Rise of the Beasts.


▪ Revenues decreased 39%, driven by lower theatrical revenues due to the 
release of Top Gun: Maverick in the prior-year period.
▪ Adjusted OIBDA decreased $176M, reflecting the timing and mix of theatrical 
releases in each year.


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.



Stream a Mountain of Entertainment, including your Nickelodeon favorites on Paramount+! Try it FREE at ParamountPlus.com!

Follow NickALive! on Twitter, RedditInstagramFacebookGoogle NewsTumblrvia RSS and more for the latest Nickelodeon and Good Burger 2 News and Highlights!

No comments:

Post a Comment

Have your say by leaving a comment below! NickALive! welcomes friendly and respectful comments. Please familiarize with the blog's Comment Policy before commenting. All new comments are moderated and won't appear straight away.