Paramount Delivers Streaming, Ad Gains in Q1

Amid leadership changes with the exit of Bob Bakish, Paramount Global reported an improved Q1 with a 6 percent boost in revenues to $7.7 billion, driven by streaming and advertising gains.

Ahead of reporting its quarterly financials yesterday, Paramount announced Bakish’s resignation, naming to a new “Office of the CEO” three executives: George Cheeks, president and CEO of CBS; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios; and Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon. The changes at the top come amid sale negotiations between Paramount and Skydance.

Unveiling the Q1 financials, Naveen Chopra, executive VP and CFO, noted, “The team delivered another quarter of strong operational and financial performance—including significant growth in total company earnings and free cash flow—despite the dynamic environment we continue to operate in. It was a record-setting quarter for Paramount+ in engagement and revenue, and in the DTC segment as we continued to substantially narrow streaming losses. And CBS dominated with its powerful combination of sports and the return of a delayed fall slate that launched to massive audiences. As we look ahead, we remain focused on execution and transforming our cost base to best position Paramount for the future.”

Direct-to-consumer revenues at Paramount rose by 24 percent to $1.9 billion, with subscription revenues rising by 22 percent to $1.4 billion, while ad revenues were up 31 percent to $520 million. Paramount+ revenues alone rose by 51 percent, with 3.7 million net additions to reach a base of 71 million. The segment narrowed its loss fo $286 million.

TV media revenues were flat at $5.2 billion, with ad revenues up 13 percent to $2.6 billion, boosted by CBS’s coverage of Super Bowl LVIII, while affiliate and subscription revenues fell 3 percent to $2 billion and licensing and other revenues dropped 25 percent to $651 million, largely due to last year’s Hollywood strikes.

Filmed entertainment rose by 3 percent to $605 million.