Paramount Q4 2024 Earnings Report
Key Takeaways
Paramount reported Q4 2024 revenue of $7.98 billion, a 5% increase year-over-year. However, the company faced a net loss of $224 million, with adjusted EPS at -$0.11. Revenue growth was driven by a 67% increase in Filmed Entertainment and an 8% increase in Direct-to-Consumer. Operating income declined by 68% to $129 million, impacted by restructuring and impairment charges.
Revenue increased 5% year-over-year to $7.98 billion.
Net loss of $224 million, compared to a $4 million profit in Q4 2023.
Direct-to-Consumer revenue grew 8%, driven by a 7% increase in subscription revenue.
Filmed Entertainment revenue surged 67%, fueled by box office hits like Gladiator II and Sonic the Hedgehog 3.
Paramount Revenue
Paramount EPS
Paramount Revenue by Segment
Forward Guidance
Paramount expects continued growth in streaming, with Paramount+ projected to achieve full-year domestic profitability in 2025. The company aims to enhance profitability through cost reductions and increased content investments.
Positive Outlook
- Paramount+ expected to reach full-year domestic profitability in 2025.
- Continued revenue growth in Direct-to-Consumer and Filmed Entertainment.
- Streaming engagement reached record levels, with Paramount+ ranking #2 in hours watched.
- Planned cost reductions to improve financial performance.
- Strong pipeline of content to drive future subscriber and revenue growth.
Challenges Ahead
- Declining TV Media revenue due to subscriber losses and macroeconomic headwinds.
- Operating income declined 68% year-over-year, reflecting restructuring costs.
- Advertising revenue saw a decline of 4% amid a challenging ad market.
- Ongoing impairment and restructuring charges impacting profitability.
- High competition in the streaming market may pressure future growth.