Paramount Global reported its third-quarter financial results and the latest streaming updates, including a swing in streaming profits from a year-ago loss, in the Hollywood conglomerate’s second earnings report on Friday when its Skydance Media was sold. This marked the second quarter of consecutive unit profits.
Paramount, which is currently controlled by National Entertainment, led by Shari Redstone, said its streamer Paramount+ had 3.5 million subscribers with about 72 million subscribers by the end of September, compared with the second quarter in June. Added subscribers.
Adjusted operating income before depreciation and amortization (OIBDA) at Paramount’s streaming unit, known as its direct-to-consumer (DTC) segment, rose to $49 million in the third quarter, up from a year earlier. The first was a loss of $238 million. DTC segment revenue rose 10 percent to $1.86 billion, driven by an 18 percent advertising gain and 7 percent consumer revenue growth. Paramount+ revenue also rose 25 percent, up 11 percent on “year-over-year subscriber growth and average revenue per user (ARPU) expansion.”
“Games, including the return of NFL and UEFA, such as Originals, which saw the largest global launch in the platform’s history for Season 2, as well as post-theatrical releases, such as And, all drove acquisitions in the quarter. ” said the company.
The transaction with Skydance is “expected to close in the first half of 2025,” the group reiterated in its earnings update. “Until then, Paramount will continue to operate as normal business.”
Paramount also posted the latest quarterly results for its film entertainment unit, which had the biggest new release in the period, while its third quarter had its biggest box office performance, which was the second quarter on June 28. Released at the end of Filmed entertainment unit adjusted OIBDA came in at $3 million, a turnaround of $52 million from a loss of $49 million in the year-ago period. Hollywood Attacks. The main driver of the bottom line was the fact that expenses decreased from $940 million to $587 million.
Movie entertainment revenue fell 34 percent to $590 million in the third quarter as theatrical revenue fell 71 percent, “reflecting the number and timing of releases in the quarter compared to last year,” and licensing. And a 6 percent decrease in other revenue as “lower revenue” from home entertainment and licensing of film library titles was partially offset by higher studios. The facility’s revenue compared to the previous year, which was affected by labor strikes.
TV media unit adjusted OIBDA fell 19 percent to $936 million in the third quarter as revenue fell 6 percent to $4.3 billion, “primarily due to lower affiliate revenue and volatility in licensing revenue. ” Affiliate and subscription revenue was down 7 percent, “due to a decrease in subscribers and a two percentage point decrease from the absence of boxing events per view, partially offset by price increases,” the company said. Advertising revenue decreased 2 percent due to “a decline in the linear advertising market, partially due to higher political advertising and the recognition of underreported revenue from an international sales partner in prior periods.”
Paramount’s total third-quarter revenue fell 6 percent to $6.73 billion, operating income fell 46 percent to $337 million, while adjusted OIBDA rose 20 percent to $858 million.
In August, Paramount emphasized its focus on a $500 million cost-savings plan and a goal to reach sustainable profitability in streaming by 2025. At the time, the company said its cost-savings plan included reducing its U.S.-based workforce by about 15 percent. Areas affected will be redundancies within marketing and communications and in finance, legal, technology and other support functions. The cuts are expected to be completed by the end of the year.
Paramount is currently run by the Office of the CEO, which includes top executives George Cheeks, Chris McCarthy, and Brian Robbins. Redstone is serving as chair.
“Our hit content performed strongly in the third quarter where Paramount+ added 3.5 million new subscribers, solidifying our position as the No. 4 global SVOD service,” executives said in Friday’s earnings report. . “Our DTC segment successfully delivered its second consecutive quarter of profitability, an improvement of more than $1 billion over the past four quarters, and across the company, we continue to successfully drive non-material cost reductions that The result would be $500 million in annual run rate savings.”
The trio concluded: “With two very strong quarters under our belt, it’s clear that we have clear momentum and our plan is working thanks to our very talented teams and creative partners.”
Credit : www.hollywoodreporter.com
