Paramount Global revenue falls but eyes streaming profitability
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The news: Paramount Global's fourth-quarter revenue fell 6% as traditional TV advertising continued to soften.
The numbers: The media company, which owns Network 10 in Australia, along with the Showtime and Nickelodeon television networks, posted revenue for the December quarter at USD7.64 billion ($11.77 billion), down on the USD8.13 billion secured a year earlier.
Overall TV revenue fell 12% as a result of advertising revenue decreasing 15%, licensing and other revenue falling 25%, and affiliate and subscription revenue declining 1%.
However, it also posted net earnings of USD514 million ($791.25 million), up on the USD21 million reported in the same quarter in 2022.
The company’s streaming platform, Paramount+, saw a 69% revenue increase and now has 67.5 million subscribers after adding 4.1 million users in the quarter, the company said. Paramount expects the platform to be profitable by 2025.
The context: Paramount Global has been at the centre of sale talks in recent months, as Hollywood studios and streaming platforms try to figure out how to boost revenue and reach profitability in the throes of a saturated direct-to-consumer entertainment market. Warner Bros. Discovery had until earlier this week been one of the reported suitors.
The company also recently significantly cut costs and shed 800 jobs globally.
What they said: “Our disciplined execution and strong content offering drove our results in 2023, as we continue to evolve our business for profitable growth in 2024 and beyond,” Bob Bakish, Paramount Global’s president and CEO, said in a statement Thursday.
“Looking ahead, we continue to be focused on maximising the return on our content investments and scaling streaming, while transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets.”
The source: Paramount media release
