Paramount Nets 5.6 million Subs in Q4 sees losses on operating costs
Paramount Global said it was a loss in the fourth quarter, as an increase in costs associated with content and restructuring compensation for robust performance by the film and streaming activities of the Mediacongglomerate.
The owner of CBS, Comedy Central and the Paramount Film Studio said that reimbursements are connected to restructuring and the imminent acquisition by Skydance Media rose during the period, just like operating costs. In the meantime, sales at the largest division, traditional TV, fell by 4%, due to decreases of advertisements and linear TV subscriptions. Nevertheless, the Paramount+ Streaming Service achieved 5.6 million new subscribers during the quarter, while the income was associated with film that rose with the releases of “Gladiator II” and “Sonic the Hedgehog 3.”
The company has established its hope to make improvements in streaming, even while its large TV portfolio is struggling with the growing appetite of viewers for digital delivery of content. Paramount+ “added 10 million new subscribers and provided an increase of 33% income, which gives us a lot of confidence Paramount+ will reach the domestic profitability of the full year before 2025,” said the company’s three CEOs, George Chees, Chris McCarthy and Brian Robbins, in a prepared explanation.
The company said that the deal with Skydance was on its way to close in the first half of 2025.
Traditional TV, which generates most of Paramount’s income, was confronted with a headwind. The company said that the turnover linked to traditional media fell by 4% to almost $ 4.98 billion, due to a 4% shortage in the advertisement and a fall in 7% turnover from distribution.
Filmed entertainment saw the turnover 67% to $ 1.08 billion, increased by the aforementioned film releases and increased licenses from library titles.
Turnover from streaming and direct-to-consumer activities increased by 8% to around $ 2.01 billion, stimulated with an increase in subscriptions by 7% and an increase in AD sales by 9%.
