Paramount Global (PARA) 8 Nov 24 2024 Q3 Earnings call transcript
Paramount Global's third quarter 2024 earnings call provided insights into the company's financial performance and strategic initiatives. The call was led by Jaime Morris, Paramount Global's EVP, Investor Relations, with participation from Co-CEOs Brian Robbins, Chris McCarthy, and George Cheeks, and CFO Naveen Chopra. The call showcased the company's strong financial performance, strategic focus, and forward-looking outlook.
Financial Performance and Strategic Initiatives
Paramount Global reported a strong financial performance in Q3 2024, with adjusted OIBDA growing by 20% year-over-year. The company's DTC business, which includes Paramount+ and Pluto, has shown significant growth, achieving profitability and adding 3.5 million subscribers in the quarter. The company also made progress in streamlining its organization, achieving $500 million in annual run rate savings through cost reductions.
Streaming and Content
Paramount Global's streaming business, Paramount+, has been a major focus for the company. The platform has seen substantial growth, with revenue increasing by 25% year-over-year, and it is now the fourth-largest global streaming service. The company has also made progress in content production, with hit films and television series driving engagement and subscriber growth. Notable mentions include Mayor of Kingstown, Tulsa King, and the return of Southpark on Paramount+.
Advertising and Distribution
Advertising revenue remained strong, with digital ad growth showing notable increase, driven by the scale of Paramount's digital advertising platform. The company also made progress in distribution, securing key renewals and expanding its reach through partnerships and innovative offerings like the Paramount+ ad-supported tier.
Looking Ahead
Paramount Global is on track for full year domestic profitability in 2025, with a robust lineup of upcoming films and television series. The company is also continuing to streamline its operations and explore strategic partnerships to drive value for its business and shareholders.
Investor and Analyst Questions
During the Q&A session, analysts and investors probed the company on various topics, including international streaming growth, cost savings, and the impact of Nielsen's underreporting on advertising revenue. Paramount Global's executives provided insightful responses, highlighting the company's strategic focus and financial outlook.
Conclusion
Paramount Global's Q3 2024 earnings call underscored the company's strong financial performance and strategic initiatives, particularly in the areas of streaming, content production, and advertising. The company's focus on operational efficiency, cost savings, and innovation positions it well for continued growth and success in the competitive media landscape.