Paramount Global reports 14% increase in D2C ad revenue

Paramount Global, a global media, streaming, and entertainment enterprise, experienced a 14% surge in its direct-to-consumer division's advertising revenue of $526 million. This increase was primarily fueled by the expansion of Paramount+ and Pluto TV. Conversely, TV advertising revenue witnessed a 15% decline, amounting to $2.28 billion.

Subscription revenue saw a remarkable upswing, soaring by 43% to $1.33 billion. Paramount+ achieved a milestone of 67.5 million subscribers worldwide by the end of Q4 FY23, marking an increase of 4.1 million compared to the previous financial quarter.

Nevertheless, traditional TV revenue for Paramount, which encompasses assets like CBS, MTV, Comedy Central, and Nickelodeon cable networks, experienced a 12% downturn to $5.16 billion in the latest quarter.

In the first quarter, Paramount reported a net earnings of $514 million, a rise from the $21 million net earnings recorded in the corresponding period last year, despite an overall revenue decline of 12% to $7.63 billion.

Affiliate and subscription revenue witnessed a slight 1% dip, totaling just over $2 billion. Paramount's film studio division revenue stood at $647 million, reflecting a 3% decrease from the previous year's $936 million, mainly due to a substantial decline in licensing revenue.

During the fourth quarter, Paramount reported $558 million in net operating cash flow and $443 million in free cash flow.

Bob Bakish, CEO of Paramount Global, attributed the company's positive performance to gains in streaming, which compensated for a softer advertising market.

The multinational conglomerate expressed its anticipation of achieving "significant total company earnings growth" by 2024. Additionally, Paramount+ is projected to attain profitability within the domestic market (US) by 2025.

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