Paramount Posts Q1 Loss

May 4, 2023 Mansha Daswani
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Paramount Global swung to a loss in the first quarter amid higher expenses in its direct-to-consumer segment and a drop in ad revenues, while reporting a new subscriber milestone at Paramount+ and usage gains at Pluto TV.

“Paramount continues to demonstrate the strength of its content engine, driving momentum across streaming, television and theatrical,” said Bob Bakish, president and CEO. “This resulted in Paramount+ and Pluto TV reaching significant milestones with 60 million subscribers and 80 million MAUs, respectively, while CBS is poised to claim the number one spot in broadcast for the 15th straight season. Looking ahead, we are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment. In addition, the updated dividend policy we have announced today will further enhance our ability to deliver long-term value for our shareholders as we move toward streaming profitability.”

Revenues were largely flat, slipping by 1 percent to $7.3 billion, with a net loss of $1.1 billion, as compared with Q1 2022’s $433 million profit.

In the TV media segment, revenues fell by 8 percent to $5.2 billion, with ad revenues down 11 percent to $2.26 billion. Affiliate and subs revenues were flat at $2.1 billion. Licensing revenues fell by 15 percent to $870 million. The segment saw its adjusted OIBDA fall by 15 percent to $1.3 billion.

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Direct-to-consumer revenues were up 39 percent to $1.5 billion, with subs revenues up 50 percent to $1.1 billion and a 15 percent gain in ad revenues. Paramount+, where revenues were up 65 percent, added 4.1 million subs in the period to reach 60 million. Pluto TV increased its total global viewing hours by 35 percent, with 80 million monthly active users. The segment posted a wider loss of $511 million amid an increase in programming costs.

Filmed entertainment was down 6 percent to $588 million, as theatrical dipped by 3 percent to $127 million and licensing fell by 7 percent to $456 million. The segment’s loss widened to $99 million.