Paramount Global (PARA Quick QuotePARA - Free Report) delivered adjusted earnings of 49 cents per share for the third quarter of 2024, which beat the Zacks Consensus Estimate by 104.2% and increased 63% from the year-ago quarter.

Revenues of $6.73 billion missed the Zacks Consensus Estimate by 5.6%. The figure declined 6% year over year, owing to softness in TV Media and Filmed Entertainment revenues.

Adjusted OIBDA rose 20% from the year-ago quarter’s level to $858 million.

Selling, general and administrative expenses decreased 11.8% year over year to $1.53 billion.

The company expects the Skydance transaction to close in the first half of 2025.

Revenues by Type

Advertising revenues (32.3% of total revenues) of $2.17 billion grew 1.9% year over year. Affiliate revenues (47.8% of total revenues) of $3.21 billion declined 1.4% year over year. Theatrical revenues (1.6% of total revenues) totaled $108 million in the reported quarter, which declined 71.4% year over year. Content-licensing revenues (18.3% of total revenues) of $1.23 billion decreased 9.3% year over year.

Segment Details

DTC Details

DTC revenues jumped 10% year over year to $1.86 billion. DTC subscription revenues grew 7%, driven by year-over-year subscriber growth and pricing increases for Paramount+.

DTC profitability improved significantly year over year. Sports, including the return of the NFL and UEFA, originals like Tulsa King, which saw the biggest global debut in platform history for season 2, and Mayor of Kingstown, as well as post-theatrical releases, such as A Quiet Place: Day One and IF, all drove acquisition in the quarter. Pluto TV continues to benefit from strong engagement resulting in increased monetization.

DTC advertising revenues rose 18%, reflecting growth from Paramount+ and Pluto TV.

Paramount+ revenues grew 25%, driven by year-over-year subscriber growth and ARPU expansion. Paramount+ subscribers increased 3.5 million in the quarter to 72 million. Paramount+ global ARPU expanded 11% year over year.

DTC adjusted OIBDA increased $287 million year over year to $49 million, reflecting revenue growth and cost efficiencies.

TV Media Details

TV Media revenues decreased 6% year over year to $4.29 billion, primarily due to lower affiliate revenues and fluctuations in licensing revenues.  

TV Media advertising revenues decreased 2%, reflecting declines in the linear advertising market, partially offset by higher political advertising and the recognition of revenues underreported by an international sales partner in prior periods.

TV Media affiliate and subscription revenues decreased 7%, driven by subscriber declines and a 2-percentage point decrease from the absence of pay-per-view boxing events, partially offset by price increases.

TV Media licensing and other revenues decreased 12%, reflecting a lower volume of licensing in the secondary market.

TV Media adjusted OIBDA decreased 19% to $936 million.

TV Media benefited from a powerful combination of sports, news and entertainment. CBS live news channels saw strong growth in minutes viewed year over year. The Daily Show continued to grow across streaming, linear and social platforms, MTV’s Video Music Awards had its biggest audience in four years, and The Challenge delivered its highest share in franchise history.

Filmed Entertainment Details

Filmed Entertainment revenues decreased 34% year over year to $590 million. Theatrical revenues plunged 71%, reflecting the number and timing of releases in the quarter compared with the prior year.

Licensing and other revenues decreased 6%, as lower revenue from home entertainment and the licensing of film library titles were partially offset by higher studio facility revenues compared to last year, which was impacted by the labor strikes.

The company reported negative Adjusted OIBDA of $54 million.

Paramount Pictures’ diverse film slate continued to deliver with the success of A Quiet Place: Day One, which set a franchise record for the biggest opening at the global box office and has grossed $261 million worldwide to date. Transformers One has grossed $127 million at the global box office to date.

Balance Sheet

As of Sept. 30, 2024, Paramount Global had cash and cash equivalents of $2.44 billion compared with $2.31 billion as of June 30, 2024. Total debt, as of Sept. 30, 2024, was $14.6 billion, which remained unchanged sequentially.

Zacks Rank & Stocks to Consider

Paramount Global currently carries a Zacks Rank #3 (Hold).

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