Paramount Global posts $8 billion in Q4 revenue

Paramount Global reportedly fell short of Wall Street’s quarterly earnings estimates despite its higher-than-expected subscriber growth for its streaming service Paramount+. The company reported a revenue of $7.9 billion in the quarter, compared to projections of $8.10 billion, said the news report citing LSEG. Its shares fell 2% in extended trading, according to a Reuters report.

Strong content slate drove its solid top-line results. Its total company revenue grew 5% for Q4. Paramount+ increased its revenue by 16% for Q4 and 33% for FY. Its subscribers grew by 5.6 million in q4 and 10 million for FY reaching 77.5 million.

Direct-to-consumer (DTC) subscription revenue grew by 7%, driven by an increase in subscribers. DTC advertising revenue rose 9%, supported by growth from Paramount+ and Pluto TV, including higher political advertising. Global viewing hours across Paramount+ and Pluto TV increased by 28% year-over-year. Paramount+ revenue saw a 16% increase, fueled by subscriber growth, with total subscribers reaching 77.5 million, including 5.6 million net additions in the quarter. Global ARPU for Paramount+ grew by 1% year-over-year, while domestic watch time per user hit a record high, increasing by 22%. Additionally, DTC adjusted OIBDA improved by $204 million year-over-year, reflecting both revenue growth and cost efficiencies.

TV Media revenue declined by 4% to $4.98 billion. Advertising revenue fell by 4%, impacted by declines in the linear advertising market and fewer sporting events on CBS, though this was partially offset by higher political advertising. Affiliate and subscription revenue dropped 7%, reflecting subscriber losses, though price increases helped mitigate the decline. Meanwhile, licensing and other revenue grew 3% to $911 million. As a result of lower overall revenue, TV Media adjusted OIBDA fell 17% to $949 million.

Its filmed entertainment division saw an adjusted operating loss of $42 million caused by higher marketing costs of releases.

Despite that, its flagship streaming service saw 5.6 million more subscribers in the fourth quarter, its highest addition in two years, exceeding expectations of 2.58 million.

Paramount’s fluctuations in advertising performance are due to its reliance on ad revenue, said the report.

Paramount Global, which is planning a merger with Skydance Media, will reportedly scrap its diversity, equity and inclusion as part of its employee incentive according to the Reuters report that accessed an internal memo.

"Completion of the Skydance transactions is subject to regulatory approvals and customary closing conditions. The transactions are expected to close in the first half of 2025. Until then, Paramount continues to operate in the normal course of business," said the company. 

George Cheeks, Chris Mccarthy & Brian Robbins, Co-CEOS said: “We are proud of the transformative year we delivered since becoming Co-CEOs, which marks a significant turning point for Paramount as we shift into a streaming-first company. DTC profitability improved $1.2 billion in 2024, driven by an impressive year at Paramount+, where we added 10 million new subscribers and delivered a 33% increase in revenue, which gives us great confidence Paramount+ will achieve full year domestic profitability for 2025. In Q4, Paramount+ saw the highest level of engagement yet and achieved a new record, ranking as the #2 domestic SVOD service for hours watched across all Original Series. These remarkable achievements would not have been possible without the hard work of our talented teams and creative partners for whom we are deeply appreciative.