Paramount Global (PARA, Financial) released its Q3 2023 earnings report on November 2, 2023, revealing a 3% increase in total company revenue. The company's Direct-to-Consumer (DTC) revenue saw significant growth, increasing by 38%.
Financial Highlights
Paramount Global's total revenue for Q3 2023 was $7,133 million, a 3% increase from $6,916 million in Q3 2022. The company's Direct-to-Consumer segment reported a revenue of $1,692 million, a 38% increase from $1,226 million in the same period last year. The Filmed Entertainment segment also saw a 14% increase in revenue, from $783 million in Q3 2022 to $891 million in Q3 2023.
Operating income for Q3 2023 was $621 million, a 10% increase from $566 million in Q3 2022. However, the company reported a net loss of $855 million for the nine months ended September 30, 2023.
Paramount+ Performance
Paramount+ saw significant growth in Q3 2023, with global subscribers surpassing 63 million. The platform's revenue increased by 61%, driven by subscriber growth and increased advertising revenue. The average revenue per user (ARPU) for Paramount+ expanded by 16% year-over-year.
CEO's Commentary
We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business. In Q3, we successfully grew Direct-to-Consumer revenue and Paramount+ subscribers while narrowing DTC losses over 30%. In fact, we now expect DTC losses in 2023 will be lower than in 2022 – meaning streaming investment peaked ahead of plan. Looking ahead, we remain on the path to achieving significant total company earnings growth in 2024." - Bob Bakish, President & CEO of Paramount Global
Outlook
Paramount Global continues to focus on its streaming services, with the company forecasting that DTC losses in 2023 will be lower than in 2022. The company also expects to achieve significant total company earnings growth in 2024.
Explore the complete 8-K earnings release (here) from Paramount Global for further details.
