PARAMOUNT REPORTS Q1 2024
EARNINGS RESULTS
★ Paramount+ Increased Revenue 51% Year-Over-Year and Reached More Than 71 Million Global
Subscribers
★ Direct-To-Consumer Adjusted OIBDA Improved Year-Over-Year for the 4th Consecutive Quarter
★ Total Advertising Revenue Rose 17%; Total Company Revenue Increased 6%
★ Generated $260 Million of Net Operating Cash Flow and $209 Million of Free Cash Flow in Q1
STATEMENT FROM NAVEEN CHOPRA, EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
"The team delivered another quarter of strong operational and financial performance — including significant growth in total company earnings and free cash flow — despite the dynamic environment we continue to operate in. It was a record-setting quarter for Paramount+ in engagement and revenue, and in the DTC segment as we continued to substantially narrow streaming losses. And CBS dominated with its powerful combination of sports and the return of a delayed fall slate that launched to massive audiences. As we look ahead, we remain focused on execution and transforming our cost base to best
position Paramount for the future."
DIRECT-TO-CONSUMER
OVERVIEW
DTC Adjusted OIBDA improved year-over-year driven by a continued focus on engagement, revenue and operating leverage.
Q1 FINANCIALS
- Revenue increased 24% year-over-year.
- Subscription revenue grew 22%, driven by subscriber growth and pricing increases for Paramount+.
- Advertising revenue rose 31%, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII.
- Paramount+ revenue grew 51%, reflecting subscriber growth and ARPU expansion.
- Paramount+ subscribers reached more than 71 million, with 3.7 million net additions in the quarter.
- Paramount+ global ARPU expanded 26% year-over-year.
- Adjusted OIBDA increased 44% year-over-year, led by improvement in Paramount+ domestic profitability.
TV MEDIA
OVERVIEW
TV Media revenue and earnings in the quarter benefited from the most watched Super Bowl of all time. Notably, CBS is poised to claim the #1 spot in broadcast for the 16th straight season and is home to the top three new series on broadcast in Tracker, Elsbeth and NCIS: Sydney.
Q1 FINANCIALS
- Revenue grew 1% to $5.2 billion.
- Advertising revenue increased 14%, reflecting a 23-percentage point benefit from CBS’ broadcast of Super Bowl LVIII.
- Affiliate and subscription revenue decreased 3%, driven by subscriber declines, partially offset by pricing increases.
- Licensing and other revenue decreased 25%, including the impact from 2023 labor strikes on content available for licensing.
- Adjusted OIBDA was $1.4 billion — an 11% increase — driven by the benefit from the broadcast of Super Bowl LVIII.
FILMED ENTERTAINMENT
OVERVIEW
Filmed Entertainment generated significant revenue in the quarter with Mean Girls and Bob Marley: One Love each debuting #1 at the domestic box office and together generating over $275 million at the global box office to date.
Q1 FINANCIALS
- Revenue increased 3%.
- Theatrical revenues grew 20%, driven by the strong performances of Mean Girls and Bob Marley: One Love, and Miramax’s release of The Beekeeper.
- Licensing and other revenue decreased 1%.
- Adjusted OIBDA improved $96 million, reflecting the timing and mix of theatrical releases in each year.
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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Note: Paramount+ was the #1 premium service in U.S. sign ups in Q1 and since launch.
