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Dec 31, 2024
Paramount Q4 2024 Earnings Report
Paramount posted mixed results with revenue growth but a decline in earnings.
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
Paramount
Paramount Revenue by Segment
Revenue by Segment
TV Media Revenue
CapyFin.comDirect-to-Consumer Revenue
CapyFin.comFilmed Entertainment Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income