PARAMOUNT REPORTS Q1 2023 EARNINGS RESULTS
• Paramount+ Reached New Milestone of 60M Subscribers; Added 4.1M in the Quarter, and Grew Revenue 65% Year-Over-Year
– Pluto TV Hit 80M Monthly Active Users (MAUs) and is the #1 Free Ad-Supported Streaming Television (FAST) Service Globally
– Total Direct-to-Consumer (DTC) Revenue Grew 39% Year-Over-Year to An Annual Run Rate of More Than $6B
– Total Global Viewing Hours Across Paramount+ and Pluto TV Increased Over 50% Year-Over-Year and Over 20% Sequentially
– DTC Advertising Revenue Grew 15% Year-Over-Year
• CBS Poised to Claim the #1 Spot in Broadcast for the 15th Straight Season
– CBS Programming Accounted for 281 Billion Minutes of Viewing in the Quarter, Nearly 50% More Than the #2 Broadcast Competitor
• Affiliate and Subscription Revenue Increased 12% as the Combination of Linear and Streaming
Continues to Yield Net Growth for Business
• Dividend Policy Updated; Quarterly Cash Dividend Reduced to $0.05 Per Share
STATEMENT FROM BOB BAKISH, PRESIDENT & CEO
Paramount continues to demonstrate the strength of its content engine, driving momentum across
streaming, television and theatrical. This resulted in Paramount+ and Pluto TV reaching significant
milestones with 60 million subscribers and 80 million MAUs, respectively, while CBS is poised to claim the #1 spot in broadcast for the 15th straight season. Looking ahead, we are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment. In addition, the updated dividend policy we have announced today will further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability.
DIRECT-TO-CONSUMER
Q1 HIGHLIGHTS
• Paramount+ reached 60M total subscribers with the addition of 4.1M subscribers in the quarter.
– Global subscriber growth was driven by a strong content slate including top originals like 1923, Tulsa King and the returns of Mayor of Kingstown and Star Trek: Picard, hit film franchises in Top Gun: Maverick and Teen Wolf: The Movie, as well as the NFL Playoffs.
– According to Antenna, Paramount+ is the #1 premium streaming service in U.S. sign-ups in the quarter and since launch in March 2021.
– Paramount+ with SHOWTIME bundle also benefited from strong SHOWTIME content slate including Your Honor and Yellowjackets.
• Pluto TV is the #1 FAST service globally; increased total global viewing hours 35% year-over-year.
– MAUs grew to 80M.
Q1 FINANCIALS
• DTC revenue increased 39% year-over-year.
– Subscription revenue grew 50% year-over-year to $1.11B, principally reflecting subscriber growth on Paramount+, including the benefit from previous launches in international markets.
– Advertising revenue rose 15% year-over-year driven by strong engagement on Paramount+.
– Paramount+ revenue grew 65% year-over-year driven by subscriber growth and increased advertising revenue.
• Adjusted OIBDA decreased $55M year-over-year, reflecting higher costs to support growth of Paramount+.
TV MEDIA
Q1 HIGHLIGHTS
• CBS led broadcast networks with 8 of the top 10 and 14 of the top 20 series, including the #1 drama in
NCIS, #1 comedy in
Young Sheldon and the top three new shows in
Fire Country,
East New York and
So Help Me Todd.
• Paramount’s cable networks continued to deliver top shows across key demographics.
– Adult cable series on Paramount’s networks accounted for the top 4 among audiences P18-34.
– Nickelodeon had the top 3 and 7 of the top 10 kids cable series among audiences P2-11, including the #1 new kids cable series in
Rubble & Crew.
Q1 FINANCIALS
• Revenue declined 8% year-over-year.
– Advertising revenue decreased 11% year-over-year, reflecting weakness in the global advertising market and fewer NFL games on CBS. Foreign exchange (FX) rate changes had a negative impact of 2 percentage points.
– Affiliate and subscription revenue declined 1% year-over-year, driven by FX and the previous restructuring of certain international affiliate agreements, which resulted in a shift of revenue from our pay television services to our DTC services.
– Licensing and other revenue declined 15% year-over-year primarily reflecting a lower volume of licensed content.
• Adjusted OIBDA decreased 15% year-over-year, driven by the revenue decline, partially offset by lower content costs.
FILMED ENTERTAINMENT
Q1 HIGHLIGHTS
• Paramount Pictures’ franchise-focused approach delivered another #1 box office debut with Scream VI, which is now the highest-grossing installment domestically in the franchise.
Q1 FINANCIALS
• Revenue declined 6% year-over-year.
– Theatrical revenue decreased $4M reflecting the timing and mix of releases.
– Licensing and other revenue decreased $35M driven primarily by lower consumer products licensing revenues.
• Adjusted OIBDA decreased $62M reflecting an adverse impact from the timing of the release of Dungeons & Dragons: Honor Among Thieves on the last day of the quarter, as well as costs from the release of Miramax’s Operation Fortune: Ruse de Guerre, and macro-driven softness in consumer products licensing.
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, 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.
PARA-IR
