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Paramount Global (PARA) Q4 Earnings Beat, Revenues Miss
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Paramount Global (PARA - Free Report) delivered adjusted earnings of 4 cents per share for the fourth quarter of 2023, which declined 50% year over year. The figure beat the Zacks Consensus Estimate of a loss of 5 cents.
Revenues of $7.64 billion missed the Zacks Consensus Estimate by 1.88%. The figure decreased 6% year over year, owing to a rise in Direct-to-Consumer revenues, partially offset by a decline in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 15% from the year-ago quarter’s level to $520 million.
Selling, general and administrative expenses decreased 3% year over year to $1.97 billion.
Paramount Global Price, Consensus and EPS Surprise
Affiliate revenues (43.8% of total revenues) of $3.34 billion increased 12.9% year over year. Theatrical revenues (1% of total revenues) totaled $78 million in the reported quarter, which decreased 19.6% year over year.
Advertising revenues (36.8% of total revenues) of $2.81 billion decreased 10.6% year over year. Content-licensing revenues (18.4% of total revenues) of $1.41 billion plunged 27% year over year.
Segment Details
Direct-to-Consumer (DTC) Details
DTC revenues jumped 33.9% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 43.1% year over year to $1.34 billion, driven by pricing increases for Paramount+ and revenues from pay-per-view events.
Paramount+ revenues surged 68.7%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 67.5 million, with 4.1 million additions in the quarter. The company witnessed 27% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 14.3% year over year to $526 million, driven by higher impressions for Paramount+ and Pluto TV.
The company reported an adjusted OIBDA loss of $490 million, narrower than a loss of $575 million in the year-ago quarter as higher revenues more than offset incremental costs to support the growth of Paramount+.
TV Media Details
TV Media revenues decreased 12.2% year over year to $5.17 billion, which reflected a decline in advertising revenues.
Advertising revenues decreased 14.9% year over year to $2.29 billion, reflecting continued softness in the global advertising market and lower political advertising.
Affiliate and subscription revenues of $2 billion declined 1% year over year. Licensing and other revenues decreased 25.1% year over year to $882 million, primarily due to lower revenues from original content produced for third parties. Content available for licensing was impacted by temporary production shutdowns as a result of labor strikes.
TV Media’s adjusted OIBDA decreased 11.9% year over year to $1.14 billion, due to the decline in advertising revenues, partially offset by lower costs for content and marketing.
Filmed Entertainment Details
Filmed Entertainment revenues declined 30.9% year over year to $647 million, as Theatrical revenues decreased 19.6% year over year to $78 million.
Licensing revenues were $566 million, down 32.1% year over year. Advertising revenues plunged 50% year over year to $3 million.
The company reported an adjusted OIBDA of $24 million compared with a positive adjusted OIBDA of $87 million in the year-ago period.
Balance Sheet
As of Dec 31, 2023, Paramount had cash and cash equivalents of $2.46 billion compared with $1.8 billion as of Sep 30.
Total debt, as of Dec 31, 2023, was $14.6 billion compared with a total debt of $15.66 billion as of Sep 30.
Zacks Rank & Stocks to Consider
Paramount Global currently carries a Zacks Rank #3 (Hold).
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Paramount Global (PARA) Q4 Earnings Beat, Revenues Miss
Paramount Global (PARA - Free Report) delivered adjusted earnings of 4 cents per share for the fourth quarter of 2023, which declined 50% year over year. The figure beat the Zacks Consensus Estimate of a loss of 5 cents.
Revenues of $7.64 billion missed the Zacks Consensus Estimate by 1.88%. The figure decreased 6% year over year, owing to a rise in Direct-to-Consumer revenues, partially offset by a decline in TV Media and Filmed Entertainment revenues.
Adjusted OIBDA decreased 15% from the year-ago quarter’s level to $520 million.
Selling, general and administrative expenses decreased 3% year over year to $1.97 billion.
Paramount Global Price, Consensus and EPS Surprise
Paramount Global price-consensus-eps-surprise-chart | Paramount Global Quote
Revenues by Type
Affiliate revenues (43.8% of total revenues) of $3.34 billion increased 12.9% year over year. Theatrical revenues (1% of total revenues) totaled $78 million in the reported quarter, which decreased 19.6% year over year.
Advertising revenues (36.8% of total revenues) of $2.81 billion decreased 10.6% year over year. Content-licensing revenues (18.4% of total revenues) of $1.41 billion plunged 27% year over year.
Segment Details
Direct-to-Consumer (DTC) Details
DTC revenues jumped 33.9% year over year to $1.87 billion, driven by subscriber growth and improvements in engagement and monetization. DTC subscription revenues soared 43.1% year over year to $1.34 billion, driven by pricing increases for Paramount+ and revenues from pay-per-view events.
Paramount+ revenues surged 68.7%, driven by subscriber growth and increased advertising revenues. Paramount+ subscribers reached approximately 67.5 million, with 4.1 million additions in the quarter. The company witnessed 27% growth in total viewing hours across Paramount+ and Pluto.
DTC advertising revenues increased 14.3% year over year to $526 million, driven by higher impressions for Paramount+ and Pluto TV.
The company reported an adjusted OIBDA loss of $490 million, narrower than a loss of $575 million in the year-ago quarter as higher revenues more than offset incremental costs to support the growth of Paramount+.
TV Media Details
TV Media revenues decreased 12.2% year over year to $5.17 billion, which reflected a decline in advertising revenues.
Advertising revenues decreased 14.9% year over year to $2.29 billion, reflecting continued softness in the global advertising market and lower political advertising.
Affiliate and subscription revenues of $2 billion declined 1% year over year. Licensing and other revenues decreased 25.1% year over year to $882 million, primarily due to lower revenues from original content produced for third parties. Content available for licensing was impacted by temporary production shutdowns as a result of labor strikes.
TV Media’s adjusted OIBDA decreased 11.9% year over year to $1.14 billion, due to the decline in advertising revenues, partially offset by lower costs for content and marketing.
Filmed Entertainment Details
Filmed Entertainment revenues declined 30.9% year over year to $647 million, as Theatrical revenues decreased 19.6% year over year to $78 million.
Licensing revenues were $566 million, down 32.1% year over year. Advertising revenues plunged 50% year over year to $3 million.
The company reported an adjusted OIBDA of $24 million compared with a positive adjusted OIBDA of $87 million in the year-ago period.
Balance Sheet
As of Dec 31, 2023, Paramount had cash and cash equivalents of $2.46 billion compared with $1.8 billion as of Sep 30.
Total debt, as of Dec 31, 2023, was $14.6 billion compared with a total debt of $15.66 billion as of Sep 30.
Zacks Rank & Stocks to Consider
Paramount Global currently carries a Zacks Rank #3 (Hold).
Crowdstrike (CRWD - Free Report) , SEMrush (SEMR - Free Report) and Adobe (ADBE - Free Report) are some better-ranked stocks that investors can consider in the broader sector.
CRWD sports a Zacks Rank #1 (Strong Buy), while SEMR and ADBE carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Crowdstrike have returned 25.7% year to date. CRWD is scheduled to release fourth-quarter and fiscal 2024 results on Mar 5.
Shares of SEMrush have lost 9.1% year to date. SEMR is set to report its first-quarter 2024 results on Mar 4.
Shares of Adobe have lost 7.5% year to date. ADBE is set to release its first-quarter 2024 results on Mar 13.