Paramount adds subs but not profit
November 8, 2024
Paramount Global posted mixed Q3 numbers as its TV and film divisions slipped, but there was solid subscription growth and profits for streaming service Paramount+.
Revenues for Q3 were $6.73 billion (€6.26bn), down 6 per cent YoY. Adjusted OIBDA was up 20 per cent at $858 million. D2C revenue was a high spot, up 10 per cent, with Paramount+ adding 3.5 million subscribers to push its total up to 72 million keeping it fourth-largest global streamer. Revenue was up 10 per cent to $1.86 billion and adjusted earnings swung from a $238 million loss in the third quarter of 2023 to a $49 million profit — marking the second quarter in a row D2C has made money, as Paramount+ hikes price and cost cuts are implemented. DTC advertising on Paramount+ and Pluto TV was up 18 per cent at $507 million.
Revenue for the TV segment was $4.3 billion, down 6 per cent from 2023. The drop was attributed to lower affiliate revenue and fluctuations in licensing turnover. TV advertising dropped 2 per cent, with political adverting in the run up to Donald Trump’s re-election partially offsetting losses elsewhere.
Filmed revenues fell 34 per cent to $590 million, with theatrical down 71 per cent. Box office successes during the quarter included A Quiet Place: Day One and Transformers One. However, adjusted earnings increased by $52 million versus Q3 2023 when impact of the strikes was kicking in.
“Lower revenue from home entertainment and the licensing of film library titles were partially offset by higher studio facility revenue compared to last year, which was impacted by the labor strikes,” said Paramount.
“Our hit content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers, solidifying our position as the number four global SVOD service,” commented Paramount Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins in a statement. “Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters, and, across the company, we continue to successfully execute non-content cost reductions that will result in $500 million in annual run rate savings. With two very strong quarters under our belt, it’s evident that we have clear momentum and that our plan is working thanks to our very talented teams and creative partners.”
The quarterly results are likely to be some of the last financials to emerge from Paramount Global in its current structure with the impending merger with Skydance.