On Wednesday, Paramount Global shared their quarterly financial report showing a loss in streaming operations prior to the planned sale of the studio to Skydance Media.
Paramount Corporation has previously announced that their streaming business is expected to report a loss during the final quarter of this year, despite predictions that their Paramount+ platform will turn a profit domestically by 2025. In terms of their direct-to-consumer division, which encompasses Pluto TV and BET+, Paramount recorded an adjusted Operating Income Before Depreciation, Amortization, and Taxes (OIBDA) loss of $286 million in the most recent financial quarter. This is a significant improvement compared to the same period last year, where the adjusted OIBDA loss was $490 million.
In the current scenario, Paramount, which is owned by National Amusements and overseen by Shari Redstone, announced that Paramount+, boasting originals like ‘Landman’, ‘Tulsa King’ and ‘Lioness’, gained 5.6 million direct-to-consumer (DTC) subscribers during the recent quarter. This is a significant increase compared to the 3.5 million DTC subscribers added in the previous quarter up until September 2024, bringing their total number of subscribers to approximately 77.5 million.
Paramount experienced a shift from a profit of $514 million in the same quarter last year to a loss of $224 million this time around. However, their total revenue for the fourth quarter increased by 5%, reaching $7.98 billion compared to $7.63 billion during the same period last year.
The total DTC (Direct-to-Consumer) earnings increased by 8%, amounting to $2.01 billion compared to the previous year’s $1.86 billion. This growth was driven by overall revenue expansion and cost savings. In contrast, TV media revenues decreased by 4% to reach $4.98 billion. The decline was due to a drop in linear TV advertising income, fewer sports events on CBS, but this was partially compensated by higher political ad spending.
The division responsible for film entertainment experienced a significant increase in total revenue, rising by approximately 67% to reach $1.08 billion. This growth was primarily fueled by the premieres of “Gladiator 2” and “Sonic the Hedgehog 3”. However, contrary to expectations, the studio reported a loss per share of 33 cents, compared to earnings of 77 cents per share during the same period last year. Additionally, the operating income declined to $129 million, as compared to $404 million in the previous year.
As co-CEOs, we’re thrilled with the transformative year we’ve accomplished so far, marking a major milestone for Paramount as we transition into a company primarily focused on streaming services. The direct-to-consumer (DTC) profitability increased by an astounding $1.2 billion in 2024, largely due to a successful year for Paramount+. We added 10 million new subscribers and saw a 33% rise in revenue, which boosts our belief that Paramount+ will achieve profitability for the full year of 2025 within the domestic market.”
This statement, made ahead of an after-market analyst call, was issued by George Cheeks, Chris McCarthy, and Brian Robbins.
The Skydance Media transaction is expected to be completed in the first half of 2025.
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2025-02-27 00:25