- **D2C momentum**: 1.4M Q3 subs added, 24% revenue growth.
- **Content investment**: $1.5B allocated for 2026, including UFC and premium originals.
- **Tech transformation**: Unified streaming platform by mid-2026 to enhance UX and ad tech.
- **2026 targets**: $30B revenue, $3.5B OIBDA, $3B+ efficiency.
- **UFC deal**: Exclusive content to drive subs and engagement.

**【CEO Summary Section】**
- 96 days post-merger, significant progress made toward North Star priorities: growth businesses, D2C scaling, and efficiency.
- Q3 D2C subscribers reached 79 million, up 1.4 million, with revenue growing 24% YoY.
- $1.5 billion in 2026 content investments, including UFC, South Park, and Duffer Brothers collaborations.
- Film slate expansion to 15 releases/year (from 8) to drive theatrical output.
- Targeting $30 billion revenue and $3.5 billion OIBDA in 2026, with efficiency improvements of $3 billion+.

**【CFO Financial Commentary】**
- 2026 guidance: $30 billion revenue, $3.5 billion OIBDA, and $3 billion+ efficiency run rate.
- Content spend to increase by $1.5 billion in 2026, balanced for global scale.
- Free cash flow expected to improve as cost management enhances profitability.

**【Q&A Key Highlights】**
- D2C growth driven by content (e.g., UFC) and tech unification into one platform by mid-2026.
- UFC deal to boost engagement and subs via exclusive content on Paramount+.
- Global content strategy with $1.5 billion in 2026 investments, focusing on premium films, TV, sports, and news.
- Tech integration to enhance ad tech and recommendation engine for better monetization.
- Efficiency focus on core D2C and film businesses, with divestitures in non-core assets (e.g., Latin American O&O networks).

Paramount Skydance Corporation (PSKY) Q3 2025 Earnings Call Transcript

- **Final Earnings Call**: Last under current structure before Skydance transaction closes on August 7, 2025. 
- **Streaming Success**: Paramount+ grows 23% in revenue, 22% in subscriptions, with ARPU up 9% and churn improving. 
- **Content Dominance**: CBS remains #1 broadcast network; Paramount+ adds 10M subscribers in a year, now top 4 globally. 
- **Financial Strength**: D2C OIBDA up 6x YoY to $157M; total affiliate and subscription revenue grows 5%. 
- **Strategic Focus**: Transition to streaming-first model with content hits driving engagement and profitability.

**【Shari Redstone's Remarks】**
- **Transaction Closure**: The Skydance transaction is set to close on August 7, 2025, marking the end of the current corporate structure. 
- **Company Progress**: Under co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins, the company has strengthened its streaming presence, with Paramount+ becoming a top 4 global SVOD service and achieving U.S. profitability faster than peers. 
- **Content Strength**: Highlights include CBS as the #1 broadcast network for 17 consecutive years, top scripted and reality series, and successful film franchises (e.g., Mission Impossible, Sonic the Hedgehog). 

**【Chris McCarthy's CEO Summary】**
- **Streaming Growth**: D2C revenue grew 15% YoY, driven by Paramount+ (23% revenue growth, 22% subscription growth). ARPU increased 9%, watch time per subscriber rose 11%, and churn improved by 70 basis points. 
- **Content Strategy**: Focus on original hits (e.g., *Yellow Jackets*, *The Shy and Mable*) led to the most top 10 SVOD originals behind only the market leader. Upcoming content includes *South Park*, *Dexter Resurrection*, and *Yellowstone* extensions. 
- **Financial Improvement**: D2C adjusted OIBDA improved 6x YoY to $157M, with $300M annualized profit improvement. Total company affiliate and subscription revenue grew 5%. 
- **Sports and Ad Demand**: CBS Sports saw 13% YoY growth in golf coverage, and the 2026 upfront shows strong demand for sports and streaming content (30% of total volume). 

**【Andrew Warren's CFO Commentary】**
- **Financial Highlights**: Total revenue $6.8B, adjusted OIBDA $824M, free cash flow $114M. DTC revenue $2.2B (15% YoY growth), TV Media OIBDA $853M, Filmed Entertainment loss $84M (vs. $54M YoY). 
- **Subscriber Metrics**: Paramount+ subscribers 77.7M (9.3M YoY increase, 1.3M QoQ decline due to international agreement expiration). 
- **Segment Performance**: TV Media advertising down 4% YoY, affiliate revenue down 7% YoY, but total affiliate and subscription revenue up 5% YoY. Filmed Entertainment revenue $690M (2% YoY growth). 

**【Closing Remarks】**
- **Team Appreciation**: Recognition of employees' resilience and execution in transitioning to a streaming-first model. 
- **Future Outlook**: Excitement for Skydance's leadership and the potential to build on Paramount's legacy with a focus on content and franchises.

Paramount Global (PARA)-31 Jul 25-2025 Q2 Earnings call transcript

- **Streaming Momentum**: Paramount+ subs +11% YoY to 79M, with 1.5M Q1 adds and 130bps churn improvement. ARPU growth and content hits (e.g., *Yellowstone*, *Dexter*) drive D2C OIBDA improvement.
- **Film Success**: *Sonic 3* delivers $500M box office and top Paramount+ acquisition, turning Film Entertainment OIBDA positive.
- **Ad Market Risks**: Digital ad supply glut pressures margins, but CBS Sports demand stabilizes linear ad revenue. Q2 expects P+ domestic profitability on ARPU acceleration.
- **Content Strategy**: Exclusive originals and franchise extensions balance library licensing, maintaining P+ exclusivity for high-value IP.
- **Macro Resilience**: Despite 3-4% linear sub declines, streaming growth offsets. 2025 guidance reaffirmed, but H2 ad spend risks remain.


**【CEO & Executive Overview】**
- Total revenue grew 2% YoY (excl. Super Bowl), driven by D2C segment with 9% YoY growth to $2B. Free cash flow of $123M reflects disciplined expense management.
- Paramount+ reached 79M global subs (+11% YoY), with 1.5M Q1 adds and 130bps churn improvement. ARPU and engagement metrics (watch time +17%) highlight profitable growth.
- Content strategy success: 25% of top SVOD originals in Q4-Q1, second only to market leader. Franchise extensions like *Yellowstone* and *Dexter* drive long-term engagement.

**【CFO Financial Breakdown】**
- Q1 OIBDA: $688M (D2C: -$109M vs. -$286M YoY). Film Entertainment OIBDA turned positive ($20M vs. -$3M YoY) on *Sonic 3* success.
- D2C ad revenue down 9% YoY (800bps Super Bowl impact), but Pluto TV engagement up 26% YoY. Expect ARPU acceleration to achieve P+ domestic profitability in 2025.
- Linear TV ad revenue flat YoY (excl. Super Bowl), with CBS primetime streaming growth 35%. Affiliate revenue down 8.6% due to sub declines and renewals.

**【Q&A Key Takeaways】**
- **Ad Market Dynamics**: Digital ad supply glut pressures margins, but CBS Sports demand offsets weakness. Pluto TV monetization to improve with engagement growth.
- **Content Licensing**: Balance library licensing with P+ exclusivity; secondary licensing remains profitable but secondary to owned platforms.
- **Sports Rights**: Opportunistic in high-impact rights (e.g., UFC), prioritizing content that drives scale and loyalty.
- **Linear Decline**: Expect 3-4% annual sub declines, offset by streaming growth. 2025 guidance unchanged, but macro uncertainty could impact H2 ad spend.
- **101 Studios**: Preferred partner model maintains incentives, aligns with Taylor Sheridan's exclusive 2028 deal.
- **M&A Strategy**: Focus on organic growth; no plans for major bundling or acquisitions beyond Skydance transaction.


Paramount Global (PARA)-8 May 25-2025 Q1 Earnings call transcript

- **Record D2C Growth**: 2024 D2C profitability improved $1.2 billion, with Paramount+ sub growth of 10 million annually.
- **Streaming Dominance**: Paramount+ ranked #2 in U.S. SVOD hours watched, up 30% YoY in revenue.
- **Film Success**: Sonic 3 became 10th highest-grossing Paramount film, with $900M Q4 box office.
- **2025 Outlook**: Free cash flow growth despite $150M Q1 restructuring; ARPU acceleration post price increase lapping.
- **Strategic Initiatives**: Skydance deal to enhance streaming originals; CBS linear resilience (7/10 top series) offsets affiliate decline.
- **Content Efficiency**: 2025 content spend flat, with focus on streaming exclusives and franchise expansion.

**【CEO Summary Section】**
- Full-year 2024 adjusted OIBDA grew 30% to $3.1 billion, driven by D2C profitability improvement of $1.2 billion.
- Paramount+ added 10 million subscribers annually, with Q4 sub growth of 5.6 million (highest in 2 years) and 20% YoY watch time per user increase.
- Film revenue reached $900 million in Q4, with Sonic the Hedgehog 3 becoming the 10th highest-grossing Paramount film of the decade.
- 2025 slate includes Mission Impossible: The Final Reckoning, Smurfs movie with Rihanna, and SpongeBob SquarePants film.

**【CFO Financial Commentary】**
- 2024 free cash flow of $489 million (highest in 4 years), with net leverage reduced to 3.8x.
- Q4 D2C OIBDA improved $200 million YoY, but segment swung to $286 million loss due to content slate seasonality.
- 2025 expectations: Free cash flow growth despite $150 million Q1 restructuring payments; ARPU growth acceleration post 2023 price increase lapping.

**【Q&A Key Highlights】**
- **Content Strategy**: Paramount+ ranked #2 in U.S. SVOD hours watched (up from #6 in 2023), with 30% YoY revenue growth.
- **Cost Management**: 2025 total content spend flat vs. 2024, with remix towards streaming.
- **Skydance Transaction**: Expected to close H1 2025, enhancing streaming originals pipeline.
- **Linear Decline Mitigation**: CBS primetime dominance (7/10 top series) offsets affiliate revenue decline.
- **Free Cash Flow Conversion**: 10% improvement potential post restructuring expenses.

**【Analyst Questions】**
- **Paramount+ Scale**: 77.5 million subscribers as of Q4, with 100+ basis point churn reduction YoY.
- **Content Spend Allocation**: Flat 2025 spend with focus on streaming exclusives.
- **Super Bowl Impact**: 2024 Super Bowl contributed $100+ million to Q1 OIBDA, creating 2025 comp headwind.
- **Licensing Market**: Secondary licensing up double-digits, but international deals delayed.
- **Film Financing**: Domain Capital deal to spread production costs across multiple films, improving cash flow visibility.

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