What drove PARAA's earnings decline in 2024?

Paramount Global's earnings decline in 2024 can be attributed to several key factors:

1. **Revenue Shortfall in Key Segments**: Paramount Global experienced a 6% year-over-year revenue dip to $6.73 billion in the third quarter, primarily due to decreased revenues in the TV Media and Filmed Entertainment segments. The company's total revenue for the year was $29.21 billion, which is significantly lower than the previous year's $29.65 billion.
2. **Weakness in TV Media and Filmed Entertainment**: The TV Media segment, which includes CBS and MTV, saw a 6% revenue drop due to lower spending from advertisers and a decline in subscribers. The Filmed Entertainment segment experienced a 34% revenue decline, mainly because of decreased domestic box office revenue and lack of major studio releases. Additionally, the absence of pay-per-view boxing events and a decline in cable TV subscriptions further contributed to the revenue shortfall.
3. **Merger-Related Challenges**: The potential merger with Skydance has faced challenges due to FCC concerns over foreign influence and corporate bias, which may have impacted the company's financial performance.
4. **Executive Stock Awards Accelerated**: The company accelerated the vesting of stock awards for several top executives, which could indicate a strategic move to align executive compensation with shareholder interests. However, this might also signal potential excess parachute payments under Section 280G of the Internal Revenue Code, which could affect financials.

In summary, Paramount Global's earnings decline in 2024 was driven by revenue shortfalls in key segments, weakness in TV Media and Filmed Entertainment, merger-related challenges, and executive stock awards acceleration.

|code|Ticker|Name|Date|Total Revenue|Net Income|market_code|
|---|---|---|---|---|---|---|
|PARA|PARA.O|Paramount Global|2023 Q1|7.265E9|-1.112E9|185|
|PARA|PARA.O|Paramount Global|2023 Q2|7.616E9|-2.9E8|185|
|PARA|PARA.O|Paramount Global|2023 Q3|7.133E9|3.09E8|185|
|PARA|PARA.O|Paramount Global|2023 Q4|7.638E9|5.17E8|185|
|PARA|PARA.O|Paramount Global|2024 Q1|7.685E9|-5.44E8|185|
|PARA|PARA.O|Paramount Global|2024 Q2|6.813E9|-5.404E9|185|
|PARA|PARA.O|Paramount Global|2024 Q3|6.731E9|2.1E7|185|
|PARA|PARA.O|Paramount Global|2024 Q4|7.984E9|-2.22E8|185|