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Paramount Global (PARA) Q2 Earnings Fall Y/Y, Revenues Beat
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Paramount Global (PARA - Free Report) delivered adjusted earnings per share (EPS) of 10 cents in second-quarter 2023, which declined 84% year over year. The Zacks Consensus Estimate for loss was pegged at 1 cent per share.
Revenues of $7.61 billion beat the Zacks Consensus Estimate by 2.5%. The figure declined 2% year over year, owing to a decrease in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 37% from the year-ago quarter’s level to $606 million.
Selling, general and administrative expenses increased 4.3% year over year to $1.78 billion.
Paramount Global Price, Consensus and EPS Surprise
Advertising revenues (31.4% of total revenues) of $2.39 billion decreased 5.9% year over year. Affiliate revenues (42.4% of total revenues) of $3.2 billion increased 12% year over year.
Content-licensing revenues (23% of total revenues) of $1.75 billion increased 10.9% year over year. Theatrical revenues totaled $231 million in the reported quarter, which decreased 69.8% year over year.
Segment Details
Direct-To-Consumer Details
Direct-To-Consumer (DTC) revenues increased 40% year over year to $1.66 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 47% year over year to $1.22 billion, reflecting paid subscriber growth on Paramount+.
Paramount+ revenue grew 47%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 61 million, with 0.7 million additions in the quarter. The company witnessed 35% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 21% year over year to $441 million, driven by higher impressions for Paramount+ and Pluto TV.
Adjusted OIBDA decreased $424 million year over year, reflecting higher costs to support growth of Paramount+.
TV Media Details
TV Media revenues decreased 2% year over year to $5.15 billion, which reflected a decline in advertising and affiliate revenues.
Advertising revenues decreased 10% year over year to $1.94 billion, reflecting weakness in the global advertising market. In the national domestic market, pharma, retail, movies and travel are showing signs of strength.
Affiliate and subscription revenues declined 2% year over year to $2.01 billion, primarily reflecting the impact of subscriber declines, partially offset by pricing increases.
Licensing and other revenues increased 17% year over year to $1.2 billion.
TV Media’s adjusted OIBDA decreased 13% year over year to $1.19 billion, driven by the decline in advertising and affiliate revenues, partially offset by higher profits from licensed content.
Filmed Entertainment Details
Filmed Entertainment revenues decreased 39% year over year to $831 million, as Theatrical revenues decreased 70% year over year to $231 million due to the release of Top Gun: Maverick in the prior-year period.
Licensing revenues were $456 million, which remained flat year over year.
Adjusted OIBDA decreased 97% year over year to $5 million, reflecting the timing and mix of theatrical releases each year.
Balance Sheet
As of Jun 30, 2023, Paramount had cash and cash equivalents of $1.71 billion compared with $2.1 billion as of Mar 31.
Total debt, as of Jun 30, 2023, was $15.8 billion compared with a total debt of $15.85 billion as of Mar 31.
Zacks Rank & Stocks to Consider
Paramount currently carries a Zacks Rank #3 (Hold).
LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) are scheduled to report the quarterly results on Aug 10, Aug 14 and Aug 15, respectively.
The Zacks Consensus Estimate for LVO’s second-quarter 2023 EPS is pegged at a loss of 2 cents, unchanged over the past 30 days.
The Zacks Consensus Estimate for DOYU’s second-quarter 2023 EPS is pegged at 2 cents, up from a loss of 2 cents per share over the past 30 days.
The Zacks Consensus Estimate for ONON’s second-quarter 2023 EPS is pegged at 13 cents, up 18.2% over the past 30 days.
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Paramount Global (PARA) Q2 Earnings Fall Y/Y, Revenues Beat
Paramount Global (PARA - Free Report) delivered adjusted earnings per share (EPS) of 10 cents in second-quarter 2023, which declined 84% year over year. The Zacks Consensus Estimate for loss was pegged at 1 cent per share.
Revenues of $7.61 billion beat the Zacks Consensus Estimate by 2.5%. The figure declined 2% year over year, owing to a decrease in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 37% from the year-ago quarter’s level to $606 million.
Selling, general and administrative expenses increased 4.3% year over year to $1.78 billion.
Paramount Global Price, Consensus and EPS Surprise
Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote
Revenues by Type
Advertising revenues (31.4% of total revenues) of $2.39 billion decreased 5.9% year over year. Affiliate revenues (42.4% of total revenues) of $3.2 billion increased 12% year over year.
Content-licensing revenues (23% of total revenues) of $1.75 billion increased 10.9% year over year. Theatrical revenues totaled $231 million in the reported quarter, which decreased 69.8% year over year.
Segment Details
Direct-To-Consumer Details
Direct-To-Consumer (DTC) revenues increased 40% year over year to $1.66 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 47% year over year to $1.22 billion, reflecting paid subscriber growth on Paramount+.
Paramount+ revenue grew 47%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 61 million, with 0.7 million additions in the quarter. The company witnessed 35% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 21% year over year to $441 million, driven by higher impressions for Paramount+ and Pluto TV.
Adjusted OIBDA decreased $424 million year over year, reflecting higher costs to support growth of Paramount+.
TV Media Details
TV Media revenues decreased 2% year over year to $5.15 billion, which reflected a decline in advertising and affiliate revenues.
Advertising revenues decreased 10% year over year to $1.94 billion, reflecting weakness in the global advertising market. In the national domestic market, pharma, retail, movies and travel are showing signs of strength.
Affiliate and subscription revenues declined 2% year over year to $2.01 billion, primarily reflecting the impact of subscriber declines, partially offset by pricing increases.
Licensing and other revenues increased 17% year over year to $1.2 billion.
TV Media’s adjusted OIBDA decreased 13% year over year to $1.19 billion, driven by the decline in advertising and affiliate revenues, partially offset by higher profits from licensed content.
Filmed Entertainment Details
Filmed Entertainment revenues decreased 39% year over year to $831 million, as Theatrical revenues decreased 70% year over year to $231 million due to the release of Top Gun: Maverick in the prior-year period.
Licensing revenues were $456 million, which remained flat year over year.
Adjusted OIBDA decreased 97% year over year to $5 million, reflecting the timing and mix of theatrical releases each year.
Balance Sheet
As of Jun 30, 2023, Paramount had cash and cash equivalents of $1.71 billion compared with $2.1 billion as of Mar 31.
Total debt, as of Jun 30, 2023, was $15.8 billion compared with a total debt of $15.85 billion as of Mar 31.
Zacks Rank & Stocks to Consider
Paramount currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) . DouYu sports a Zacks Rank #1 (Strong Buy), while LiveOne and On Holding carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LiveOne (LVO - Free Report) , DouYu International (DOYU - Free Report) and On Holding (ONON - Free Report) are scheduled to report the quarterly results on Aug 10, Aug 14 and Aug 15, respectively.
The Zacks Consensus Estimate for LVO’s second-quarter 2023 EPS is pegged at a loss of 2 cents, unchanged over the past 30 days.
The Zacks Consensus Estimate for DOYU’s second-quarter 2023 EPS is pegged at 2 cents, up from a loss of 2 cents per share over the past 30 days.
The Zacks Consensus Estimate for ONON’s second-quarter 2023 EPS is pegged at 13 cents, up 18.2% over the past 30 days.