Release Date: April 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the key drivers behind the 6% revenue growth for Paramount Global in Q1 2024?
A: Naveen K. Chopra, EVP & CFO: The 6% revenue growth was primarily driven by a significant increase in advertising revenue, which grew 17% due to the impact of Super Bowl LVIII. Additionally, direct-to-consumer subscription revenue increased by 22%, with Paramount+ subscription revenue growing by over 50%.
Q: What were the main factors contributing to the 80% growth in adjusted OIBDA?
A: Naveen K. Chopra, EVP & CFO: The substantial growth in adjusted OIBDA was a result of improvements across all three business segments: TV Media, Filmed Entertainment, and Direct-to-Consumer. Specifically, Filmed Entertainment adjusted OIBDA improved by nearly $100 million compared to the previous year.
Q: How did the Super Bowl impact the company's advertising and subscriber growth?
A: Naveen K. Chopra, EVP & CFO: The Super Bowl contributed 22 percentage points to the total company advertising growth rate. It also significantly boosted engagement across CBS, Paramount+, and Nickelodeon. In terms of subscriptions, Paramount+ added 3.7 million subscribers during the quarter, benefiting from the NFL and the Super Bowl.
Q: What are the strategic priorities for Paramount Global following the leadership transition?
A: Chris McCarthy, President and CEO of Showtime/MTV Entertainment Studios & Paramount Media Networks: The strategic plan is centered around three pillars: maximizing hit content, strengthening the balance sheet, and optimizing the streaming strategy. This plan is designed to position the company for greater success in a rapidly changing media landscape.
Q: Can you elaborate on the improvements in the Direct-to-Consumer segment's performance?
A: Naveen K. Chopra, EVP & CFO: The Direct-to-Consumer segment saw a 24% revenue growth, led by a 51% increase in Paramount+ revenue. Adjusted OIBDA for this segment improved by 44%, driven by domestic profitability and a disciplined focus on cost management, which helped decrease content, marketing, and other overhead costs as a percentage of revenue.
Q: What are the details of the agreement to sell the equity interest in Viacom18, and how will it impact the company's financials?
A: Naveen K. Chopra, EVP & CFO: We entered into an agreement to sell our equity interest in Viacom18 for approximately $500 million. The after-tax proceeds from this transaction are expected to further benefit our leverage when the deal closes at the end of 2024 or early 2025, subject to regulatory approval. This move allows us to exit our ownership position with a strong financial return while continuing to monetize our content in India through licensing arrangements.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
