Paramount Global (PARA) Q3 2024 Earnings Call Highlights: Streaming Growth and Cost Savings ...

GuruFocus.com11-09

Adjusted OIBDA: $858 million, up 20% year over year. Paramount+ Revenue Growth: Up 25% year over year. Paramount+ Subscribers: Added 3.5 million, reaching 72 million total. D2C Advertising Growth: 18%...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2482416067?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/XF3el6Kp4X3fwlLyy1S.Dg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/39beb8bf62eecadfa09cc50427b80280","is_english":true,"pubTime":"2024-11-09 15:04","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2482416067","market":"us","top_or_hot":-1,"title":"Paramount Global (PARA) Q3 2024 Earnings Call Highlights: Streaming Growth and Cost Savings ...","media":"GuruFocus.com","content":"<div>\n<p>Adjusted OIBDA: $858 million, up 20% year over year.\nParamount+ Revenue Growth: Up 25% year over year.\nParamount+ Subscribers: Added 3.5 million, reaching 72 million total.\nD2C Advertising Growth: 18%...</p>\n\n<a href=\"https://finance.yahoo.com/news/paramount-global-para-q3-2024-070444232.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Paramount Global (PARA) Q3 2024 Earnings Call Highlights: Streaming Growth and Cost Savings ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nParamount Global (PARA) Q3 2024 Earnings Call Highlights: Streaming Growth and Cost Savings ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-09 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/paramount-global-para-q3-2024-070444232.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Adjusted OIBDA: $858 million, up 20% year over year.\nParamount+ Revenue Growth: Up 25% year over year.\nParamount+ Subscribers: Added 3.5 million, reaching 72 million total.\nD2C Advertising Growth: 18%...</p>\n\n<a href=\"https://finance.yahoo.com/news/paramount-global-para-q3-2024-070444232.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PARA","symbol_name":"Paramount Global","start_time":0,"source_url":"https://finance.yahoo.com/news/paramount-global-para-q3-2024-070444232.html","article_id":"2482416067","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/XF3el6Kp4X3fwlLyy1S.Dg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/39beb8bf62eecadfa09cc50427b80280"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482416067","pubTimestamp":1731135884,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted OIBDA: $858 million, up 20% year over year.Paramount+ Revenue Growth: Up 25% year over year.Paramount+ Subscribers: Added 3.5 million, reaching 72 million total.D2C Advertising Growth: 18% increase, with continued double-digit growth expected in Q4.TV Media Advertising Revenue: Declined 2% year over year.Affiliate and Subscription Revenue: Declined 1% in Q3.Paramount+ Subscription Revenue: Up 27% year over year.Cost Savings: $500 million in annual run rate savings, with 90% of reductions executed.GuruFocus has detected 4 Warning Signs with PARA.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Paramount+ added 3.5 million subscribers, reinforcing its position as the number four global streaming service.Paramount+ revenue grew by 25% year over year, marking the second consecutive quarter of profitability.Paramount Global's advertising revenue grew by 2%, driven by strong digital ad growth and political spending.TV media advertis","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PARA":"Paramount Global","PARAA":"Paramount Global"},"translate_title":"派拉蒙全球(PARA)2024年第三季度收益看涨期权亮点：流媒体增长和成本节约……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PARA":1,"PARAA":0.9},"content_text":"Adjusted OIBDA: $858 million, up 20% year over year.\nParamount+ Revenue Growth: Up 25% year over year.\nParamount+ Subscribers: Added 3.5 million, reaching 72 million total.\nD2C Advertising Growth: 18% increase, with continued double-digit growth expected in Q4.\nTV Media Advertising Revenue: Declined 2% year over year.\nAffiliate and Subscription Revenue: Declined 1% in Q3.\nParamount+ Subscription Revenue: Up 27% year over year.\nFree Cash Flow: $214 million in Q3.\nLeverage: Reduced to 3.8 times.\nCost Savings: $500 million in annual run rate savings, with 90% of reductions executed.\nLicensing Revenue: Declined 9% in the quarter.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with PARA.\n\nRelease Date: November 08, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nParamount+ added 3.5 million subscribers, reinforcing its position as the number four global streaming service.\nParamount+ revenue grew by 25% year over year, marking the second consecutive quarter of profitability.\nThe company achieved $500 million in annual run rate savings through cost reductions.\nPluto TV reached record engagement with 5.6 billion viewing hours year-to-date.\nParamount Global's advertising revenue grew by 2%, driven by strong digital ad growth and political spending.\n\n Negative Points \n\nTV media advertising revenue declined by 2%, reflecting ecosystem trends and the absence of Showtime pay-per-view events.\nLicensing and other revenue declined by 9% due to lower volume of licensing and home entertainment revenues.\nThe ongoing dispute with Nielsen remains unresolved, potentially impacting advertising measurement.\nInternational D2C profitability is tracking 12 to 18 months behind domestic profitability.\nFree cash flow in Q4 is expected to be negative due to content spend timing and restructuring payments.\n\n Q & A Highlights \nQ: Brian, can you elaborate on the strategic considerations for direct-to-consumer partnerships and the progress towards domestic streaming profitability? A: Chris McCarthy, Interim Principal Executive Officer, explained that Paramount+ has seen significant revenue growth and is on track for domestic profitability in 2025. The company is open to partnerships that drive value but feels confident in its standalone position. Naveen Chopra, CFO, added that domestic profitability is expected next year, with international operations trailing by 12 to 18 months.\nQ: What is the strategy for Paramount+ in international markets, and can you quantify the impact of underreported international ad sales? A: Chris McCarthy stated that the company is taking a market-by-market approach to maximize content value, using a mix of owned operations, hard bundles, and licensing. Naveen Chopra noted that the underreported revenue in Q3 was significant, around $50 million, and no further adjustments are expected.\nQ: How has the dispute with Nielsen affected advertising revenue, and what are the current employee numbers in TV media? A: George Cheeks, CEO of CBS, mentioned that there has been no adverse impact on ad revenue from the Nielsen dispute, and the company is focused on ensuring the economics make sense. The TV media division has about 6,000 domestic employees and 3,000 international, including sports production and local stations.\nQ: How does Paramount view deeper streaming partnerships beyond bundles, and how are content costs allocated between DTC and TV media? A: Chris McCarthy emphasized the company's strong standalone position and strategic partnerships like those with Walmart and Delta Airlines. Naveen Chopra explained that content costs are allocated based on the relative value of content windows, with more costs shifting to streaming as viewership increases.\nQ: Can you provide more detail on the impact of the Charter partnership on DTC trends and expectations for Q4 EBITDA? A: Naveen Chopra noted that the Charter partnership contributed to subscriber growth, with positive early results. He expects most of Q3's overperformance to flow through to the full year, with Q4 benefiting from restructuring and political advertising, despite higher content expenses.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482416067"}