Paramount Global (PARA - Free Report) delivered adjusted earnings of 62 cents per share for the first quarter of 2024, which beat the Zacks Consensus Estimate by 82.35% and increased from 9 cents reported in the year-ago quarter.
Revenues of $7.68 billion beat the Zacks Consensus Estimate by 0.1%. The figure rose 5.8% year over year, owing to an increase in Direct-to-Consumer (DTC), TV Media and Filmed Entertainment revenues.
Adjusted OIBDA surged 80% from the year-ago quarter’s level to $987 million.
Selling, general and administrative expenses decreased 5.2% year over year to $1.66 billion.
Revenues by Type
Advertising revenues (40.3% of total revenues) of $3.09 billion jumped 16.8% year over year. Affiliate revenues (43.7% of total revenues) of $3.35 billion rose 5.6% year over year. Theatrical revenues (2% of total revenues) totaled $153 million in the reported quarter, which climbed 20% year over year. Content-licensing revenues (14% of total revenues) of $1.07 billion plunged 17.5% year over year.
Segment Details
DTC Details
DTC revenues jumped 24% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues climbed 22% year over year to $1.35 billion, driven by subscriber growth and increased pricing for Paramount+.
Paramount+ revenues rallied 51%, driven by subscriber growth and ARPU expansion. Paramount+ subscribers reached approximately 71 million, with 3.7 million additions in the quarter. The company witnessed 26% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 31% year over year to $520 million, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII.
The company reported an adjusted OIBDA loss of $286 million, primarily due to an improvement in Paramount+ domestic profitability.
TV Media Details
TV Media revenues rose 1% year over year to $5.23 billion. Advertising revenues increased 14% year over year to $2.58 billion. It reflected a 23-percentage point benefit from CBS’ broadcast of Super Bowl LVIII.
Affiliate and subscription revenues of $1.99 billion declined 3% year over year, primarily due to a fall in subscribers, partially offset by increased pricing. Licensing and other revenues plunged 25% year over year to $651 million, including the impact of 2023 labor strikes on content available for licensing.
TV Media’s adjusted OIBDA increased 11% year over year to $1.44 billion.
Filmed Entertainment Details
Filmed Entertainment revenues rose 3% year over year to $605 million, as Theatrical revenues jumped 20% year over year to $153 million.
Licensing revenues were $451 million, down 1% year over year. Advertising revenues plunged 80% year over year to $1 million.
The company reported an adjusted OIBDA loss of $3 million, narrower than a loss of $99 million in the year-ago period.
Balance Sheet
As of Mar 31, 2024, Paramount Global had cash and cash equivalents of $2.38 billion compared with $2.46 billion as of Dec 31, 2023. Total debt, as of Mar 31, 2024, was $14.6 billion, which remained unchanged sequentially.
Zacks Rank & Stocks to Consider
Paramount Global currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Disney (DIS - Free Report) , Reynolds Consumer Products (REYN - Free Report) and Roblox (RBLX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Disney have jumped 26.2% year to date. DIS is set to report second-quarter fiscal 2024 results on May 7.
Shares of Reynolds Consumer Products have gained 7% year to date. REYN is slated to report first-quarter 2024 results on May 8.
Shares of Roblox have plunged 23.5% year to date. RBLX is set to report first-quarter 2024 results on May 9.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Paramount Global (PARA - Free Report) delivered adjusted earnings of 62 cents per share for the first quarter of 2024, which beat the Zacks Consensus Estimate by 82.35% and increased from 9 cents reported in the year-ago quarter.
Revenues of $7.68 billion beat the Zacks Consensus Estimate by 0.1%. The figure rose 5.8% year over year, owing to an increase in Direct-to-Consumer (DTC), TV Media and Filmed Entertainment revenues.
Adjusted OIBDA surged 80% from the year-ago quarter’s level to $987 million.
Selling, general and administrative expenses decreased 5.2% year over year to $1.66 billion.
Revenues by Type
Advertising revenues (40.3% of total revenues) of $3.09 billion jumped 16.8% year over year. Affiliate revenues (43.7% of total revenues) of $3.35 billion rose 5.6% year over year. Theatrical revenues (2% of total revenues) totaled $153 million in the reported quarter, which climbed 20% year over year. Content-licensing revenues (14% of total revenues) of $1.07 billion plunged 17.5% year over year.
Segment Details
DTC Details
DTC revenues jumped 24% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues climbed 22% year over year to $1.35 billion, driven by subscriber growth and increased pricing for Paramount+.
Paramount+ revenues rallied 51%, driven by subscriber growth and ARPU expansion. Paramount+ subscribers reached approximately 71 million, with 3.7 million additions in the quarter. The company witnessed 26% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 31% year over year to $520 million, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII.
The company reported an adjusted OIBDA loss of $286 million, primarily due to an improvement in Paramount+ domestic profitability.
TV Media Details
TV Media revenues rose 1% year over year to $5.23 billion. Advertising revenues increased 14% year over year to $2.58 billion. It reflected a 23-percentage point benefit from CBS’ broadcast of Super Bowl LVIII.
Affiliate and subscription revenues of $1.99 billion declined 3% year over year, primarily due to a fall in subscribers, partially offset by increased pricing. Licensing and other revenues plunged 25% year over year to $651 million, including the impact of 2023 labor strikes on content available for licensing.
TV Media’s adjusted OIBDA increased 11% year over year to $1.44 billion.
Filmed Entertainment Details
Filmed Entertainment revenues rose 3% year over year to $605 million, as Theatrical revenues jumped 20% year over year to $153 million.
Licensing revenues were $451 million, down 1% year over year. Advertising revenues plunged 80% year over year to $1 million.
The company reported an adjusted OIBDA loss of $3 million, narrower than a loss of $99 million in the year-ago period.
Balance Sheet
As of Mar 31, 2024, Paramount Global had cash and cash equivalents of $2.38 billion compared with $2.46 billion as of Dec 31, 2023. Total debt, as of Mar 31, 2024, was $14.6 billion, which remained unchanged sequentially.
Zacks Rank & Stocks to Consider
Paramount Global currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Disney (DIS - Free Report) , Reynolds Consumer Products (REYN - Free Report) and Roblox (RBLX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Disney have jumped 26.2% year to date. DIS is set to report second-quarter fiscal 2024 results on May 7.
Shares of Reynolds Consumer Products have gained 7% year to date. REYN is slated to report first-quarter 2024 results on May 8.
Shares of Roblox have plunged 23.5% year to date. RBLX is set to report first-quarter 2024 results on May 9.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on DIS - FREE
Get the latest research report on REYN - FREE
Get the latest research report on RBLX - FREE
Get the latest research report on PARA - FREE