PARAMOUNT REPORTS Q4 AND FULL YEAR 2024 EARNINGS RESULTS
Strong Content Slate Drove Solid Top Line Results
▪ Total Company Revenue Grew 5% for Q4
Continued Momentum in Streaming
▪ Paramount+ Increased Revenue by 16% for Q4 and 33% for FY
▪ Subscribers Grew by 5.6 Million in Q4 and 10 Million for FY, Reaching 77.5 Million
▪ DTC Adjusted OIBDA Improved by $204 Million for Q4 and by Nearly $1.2 Billion in 2024
Strengthened Balance Sheet in 2024
▪ Generated FY Net Operating Cash Flow of $752 Million and Free Cash Flow of $489 Million, Up
Significantly from Prior Year
▪ Achieved Targeted Annual Run-Rate Cost Savings of $500 Million
In addition, Skydance transactions are expected to close in the first half of 2025
STATEMENT FROM GEORGE CHEEKS, CHRIS MCCARTHY & BRIAN ROBBINS, CO-CEOS
"We are proud of the transformative year we delivered since becoming Co-CEOs, which marks a
significant turning point for Paramount as we shift into a streaming-first company. DTC profitability improved $1.2 billion in 2024, driven by an impressive year at Paramount+, where we added 10 million new subscribers and delivered a 33% increase in revenue, which gives us great confidence Paramount+ will achieve full year domestic profitability for 2025. In Q4, Paramount+ saw the highest level of engagement yet and achieved a new record, ranking as the #2 domestic SVOD service for hours watched across all Original Series. These remarkable achievements would not have been possible without the hard work of our talented teams and creative partners for whom we are deeply appreciative."
DIRECT-TO-CONSUMER
OVERVIEW
DTC saw impressive momentum in Q4, including continued earnings improvement year over-year, significant growth in subscribers and record engagement resulting in measurable revenue growth. In fact, Q4 added 5.6 million new subscribers on Paramount+, our best quarter of subscriber growth in two years, and 10 million for the full year. Paramount+ reached a new high, ranking as the #2 domestic SVOD service for hours watched across all Original Series in Q4. Paramount+ scored three of the top 10 SVOD Originals with
Landman,
Tulsa King and
Lioness. These series drove engagement and acquisitions, along with two new Showtime series in the premium tier,
The Agency and
Dexter Original Sin, as well as the CBS primetime slate and new theatrical releases.
Internationally, originals and theatrical films are performing exceptionally well, including
Yellowstone and
South Park, which we have exclusively for SVOD. Pluto TV also had a record year, growing 16% in hours watched for Q4 year-over-year and 8% for the full year.
Q4 FINANCIALS
▪ DTC revenue increased 8% year-over-year.
– DTC subscription revenue grew 7%, driven by subscriber growth.
– DTC advertising revenue rose 9%, reflecting growth from Paramount+ and Pluto TV, including higher political advertising.
◦ Global viewing hours increased 28% year-over-year across Paramount+ and Pluto TV.–Paramount+ revenue grew 16%, driven by subscriber growth.
◦ Paramount+ subscribers reached 77.5 million, with 5.6 million net additions in the quarter.
◦ Paramount+ global ARPU increased 1% year-over-year.
◦ Paramount+ domestic watch time per user reached a record high and increased 22% year-over-year.
▪ DTC adjusted OIBDA improved $204 million year-over-year, reflecting revenue
growth and cost efficiencies.
TV MEDIA
OVERVIEW
TV Media continues to define the linear landscape with #1 hit TV series across broadcast and cable. The
NFL on CBS delivered three of the top four regular season games, averaging over 19 million viewers on broadcast, and streaming viewership was up nearly 60% for the season. The Fall 2024 primetime slate on CBS featured seven of the top 10 and over 50% of the top 30 programs, including
Tracker, the most-watched series on television, and
Matlock, the #1 new series. The return of
Yellowstone on Paramount Network broke series records with 18 million total viewers on premiere night and remains the #1 show on cable for the quarter and the full year.
The Daily Show on Comedy Central remains the #1 cable entertainment series in Late Night for both Q4 and the full year. MTV’s
The Challenge, the longest running reality competition series on TV, was the #1 competition series on cable for the year. Nickelodeon’s tremendous popularity continues with both kids and preschoolers, including the #1 Kids series with
SpongeBob, which is up in Paramount+ views and is the most watched Kids & Family title on the service.
- #1 Series: Tracker
- #1 New Series: Matlock
- #1 Comedy: Georgie & Mandy's First Marriage
- #1 Cable Series: Yellowstone
- #1 Cable Competition: The Challenge
- #1 Kids (6-11): SpongeBob SquarePants
Q4 FINANCIALS
▪ TV Media revenue declined 4% to $4.98 billion.
–TV Media advertising revenue decreased 4%, reflecting declines in the linear advertising market and fewer sporting events on CBS, partially offset by higher political advertising.
–TV Media affiliate and subscription revenue decreased 7% reflecting subscriber declines, partially offset by price increases.–TV Media licensing and other revenue increased 3% to $911 million.
▪ TV Media adjusted OIBDA decreased 17% to $949 million, driven by the lower revenue.
FILMED ENTERTAINMENT
OVERVIEW
Paramount Pictures’ franchise-driven strategy delivered significant revenue growth in Q4, supported by
Sonic the Hedgehog 3, which is approaching nearly $500 million at the global box office, making it the highest-grossing film in the franchise, and is expected to be one of the 10 most profitable Paramount Pictures releases of the last decade. Across its three installments, the
Sonic the Hedgehog series
has
Five #1 Domestic Box Office Debuts:
- Mean Girls
- Bob Marley: One Love
- If
- Sonic the Hedgehog 3
- Smile 2
Q4 FINANCIALS
▪ Filmed Entertainment revenue increased 67% to $1.08 billion.
–Theatrical revenues increased $336 million, driven by the releases of Gladiator II and Sonic the Hedgehog 3.
–Licensing and other revenues increased 17%, reflecting a higher volume of licensing of library titles and higher studio facility revenue compared with 2023, which was impacted by the labor strikes.
▪ Filmed Entertainment adjusted OIBDA decreased $66 million, as a result of marketing costs associated with the theatrical releases of five films in the quarter compared to one film in the year ago period
SKYDANCE TRANSACTIONS
Completion of the
Skydance transactions is subject to regulatory approvals and customary closing conditions. The transactions are expected to close in the first half of 2025. Until then, Paramount continues to operate in the normal course of business.
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
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This communication contains both historical and forward-looking statements, including statements related to our future results, performance and achievements. 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 business; the adverse impact on our advertising revenues as a result of changes in consumer behavior, advertising market conditions and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries, including cost increases; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to our decisions to make investments in new businesses, products, services and technologies, and the evolution of our business strategy; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; damage to our reputation or brands; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and content; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; domestic and global political, economic and regulatory factors affecting our businesses generally; the inability to hire or retain key employees or secure creative talent; disruptions to our operations as a result of labor disputes; challenges realizing synergies and other anticipated benefits expected from the Transactions, including integrating the Companyʼs and Skydanceʼs businesses successfully; the dilution to the earnings per share of New Paramount which may negatively affect the price of New Paramount Class B Common Stock; any negative effects following the completion of the Transactions on the market price of New Paramount Class B Common Stock; the uncertainty of the Companyʼs stockholders with respect to the value of the stock consideration they will receive; the risks that holders of our Class B Common Stock may not receive all merger consideration in the form they elect; the reduced ownership and economic interest of our existing stockholders in New Paramount; the cutbacks the PIPE Transaction is subject to in the event that stock elections exceed specified thresholds; the risks that the Transactions may be prevented or delayed or the anticipated benefits of the Transactions could be reduced if we do not obtain certain regulatory approvals; the conditions to the Closing to which the Transactions are subject; our and New Paramountʼs continued incurrence of significant transaction and merger-related transaction costs in connection with the Transactions; business uncertainties, including the effect of the Transactions on the Companyʼs employees, commercial partners, clients and customers, and contractual restrictions while the Transactions are pending; the Transaction Agreementʼs limitation on our ability to pursue alternatives to the Transactions; tax consequences of the Transactions that may adversely affect holders of our Common Stock; the imposition of a new U.S. federal excise tax on us or on New Paramount in connection with redemptions by us or New Paramount of our respective shares; interests of our executive officers, directors and affiliates of Paramount that are different from, or in addition to, the rights of our stockholders; risks related to a failure to complete the Transactions which could
negatively impact our businesses or financial results and the stock price of our Common Stock; lawsuits relating to the Transactions potentially preventing or delaying the closing of the Transactions and/or resulting in substantial costs; the waiver of one or more of the conditions to Closing without re-obtaining stockholder approval; difficulties retaining, motivating and recruiting executives and other key employees before and following the completion of the Transactions in light of uncertainty regarding the Transactions; the Transactions triggering change of control or other provisions in certain agreements which may allow third parties to terminate or alter existing contracts or relationships; our stockholders not being entitled to appraisal rights in connection with the Transactions; changes and uncertainties with respect to taxes in the jurisdictions in which New Paramount will operate which may have an adverse effect on New Paramountʼs business; volatility in the prices of our Common Stock; 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 report, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
