EARNINGS PRESS RELEASE | May 8, 2025 PARAMOUNT REPORTS Q1 2025 EARNINGS RESULTS Powerful Slate of Hit TV Series, Films & Sports Fueled Strong Content Performance Streaming Continues Strong Momentum Focused Execution Delivered Results Across the Business Skydance Transactions Expected to Close in First Half of 2025 STATEMENT FROM GEORGE CHEEKS, CHRIS MCCARTHY & BRIAN ROBBINS, CO-CEOS We are very pleased with our performance in the quarter driven by a powerful content slate and focused execution. Paramount+ a ...

Core Viewpoint - Paramount Global anticipates the merger with Skydance Media to close in the first half of 2025, pending regulatory approvals from the FCC [1][2][3] Financial Performance - Q1 revenue decreased by 6% to $7.2 billion, but increased by 2% when excluding the impact of Super Bowl LVIII from the previous year [4] - The company reported a net profit of $152 million, a significant recovery from a loss of $554 million in the same quarter last year [5] - Adjusted EPS was 29 cents per share [5] - Streaming revenue rose by 9% to over $2 billion, with Paramount+ contributing to a 16% increase in subscription revenue [6] Subscriber Growth - Paramount+ added 1.5 million net new subscribers, reaching a total of 79 million by the end of March [7] - The growth was driven by series, post-theatrical releases, CBS primetime, and sports programming [7] Advertising and Media Performance - Ad sales fell by 9%, with 8% attributed to Super Bowl comparisons [6] - CBS is expected to be the most-watched network in primetime for the 17th consecutive season, despite a 21% decline in ad revenue [8] Division Performance - TV Media operating profit decreased by 36% to $922 million on revenue of $4.54 billion [9] - Filmed entertainment revenue increased by 4%, with theatrical revenue easing by 3% [9] - The success of Sonic the Hedgehog 3 contributed to a profit swing in the division, moving from a $3 million loss to a $20 million profit [10]

Core Viewpoint - Paramount Global announced its financial results for the first quarter ended March 31, 2025, indicating ongoing developments in its media and entertainment operations [1]. Company Overview - Paramount Global (NASDAQ: PARA, PARAA) is a leading global media, streaming, and entertainment company that creates premium content and experiences for audiences worldwide [3]. - The company's portfolio includes well-known brands such as CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, and Pluto TV [3]. - Paramount holds one of the industry's most extensive libraries of TV and film titles, providing innovative streaming services and digital video products, along with capabilities in production, distribution, and advertising solutions [3]. Conference Call Details - A conference call regarding the financial results will be held at 4:30 p.m. (ET) on May 8, 2025, with a live audio webcast available on Paramount's Investors homepage [1]. - The call can be accessed by dialing 833-470-1428 (domestic) or 404-975-4839 (international) using access code 425761 [2]. - An audio replay of the call will be available starting at 7:30 p.m. (ET) on the same day [2].

Core Viewpoint - The announcement by Trump to impose a 100% tariff on films produced abroad and entering the U.S. is aimed at protecting the domestic film industry, citing national security concerns and the need to combat excessive foreign influence in media [2][3]. Group 1: Impact on Hollywood - Following the tariff announcement, stock prices of major Hollywood studios dropped significantly, with Paramount down 2.2%, Disney 2.4%, Netflix 3.3%, and Warner Bros. 4.2% [3]. - The U.S. film industry has been gradually moving production overseas due to high labor costs, particularly in California, where Hollywood is located [5][8]. - The 2023 strike in Hollywood highlighted the industry's reliance on labor, with discussions around job losses due to the rise of artificial intelligence [5][24]. Group 2: Global Film Production Trends - As of October 2024, 120 countries and regions have implemented film production incentive policies to attract projects, benefiting from increased investment and job creation [11]. - Countries like Spain and Iceland have reported high returns on investment for film incentives, with Spain achieving a return index of 9 from 2019 to 2022 [12]. - Since 2022, U.S. film production has decreased by 26%, while global film production has surged, with a 34% year-on-year growth in the first quarter of 2025 [13]. Group 3: Economic Implications - The cost savings from relocating film projects can range from 20% to 40%, prompting many major productions to move overseas [22][23]. - Upcoming Hollywood films, such as "Mission: Impossible 8" and "Avatar 3," are being produced in countries like the UK and New Zealand, respectively [23]. - The shift in production has resulted in a significant decline in job opportunities for U.S. film industry workers, with a 25% reduction in employment over the past three years [24]. Group 4: Political Context - Trump's policies appear to be more about political maneuvering against Hollywood, which has historically opposed him, rather than genuine concern for the industry [25][28]. - The imposition of tariffs may provoke retaliatory measures from other countries, potentially harming the U.S. film industry's global standing [31][35]. - The announcement of the tariff was quickly followed by a statement from the White House indicating that the policy was not finalized, reflecting the uncertainty surrounding Trump's trade strategies [37].

Core Viewpoint - Paramount Global (PARA) is expected to report a decline in both revenues and earnings for the first quarter of 2025 compared to the previous year, with significant factors influencing these results [1][4][6]. Financial Performance Expectations - The Zacks Consensus Estimate for PARA's first-quarter 2025 revenues is $7.1 billion, reflecting a 7.56% decrease from the same quarter last year [1]. - The consensus estimate for earnings is 30 cents per share, which represents a 51.61% decrease year-over-year and has been revised downward by 21.05% in the last 30 days [1]. Subscriber Growth and Content Strategy - PARA added 5.6 million new subscribers on Paramount+ in the fourth quarter of 2024, and subscriber growth is expected to continue, albeit at a slower pace due to content release timing [5]. - The company is anticipated to maintain content momentum on Paramount+, with the return of popular shows and the launch of new series [4]. Advertising and Affiliate Revenue Trends - In the TV Media segment, affiliate revenues are projected to decline by 6.7% year-over-year, with an increased rate of decline expected in the first quarter due to recent renewals and changes in the pay TV ecosystem [6][7]. - Advertising revenues also saw a decline of 4% year-over-year in the previous quarter, with similar trends likely to persist [6]. Adjusted OIBDA and Business Trends - Adjusted OIBDA is expected to decline in the first quarter, influenced by the aforementioned business trends and the comparison to the Super Bowl, which had a positive impact in 2024 [7]. - The cumulative impact of recent renewals with major distributors is another significant factor affecting performance [7]. Earnings Expectations and Model Insights - PARA currently has an Earnings ESP of -24.85% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [8].

Core Viewpoint - The announcement by President Trump to impose tariffs of up to 100% on films produced overseas has sparked widespread criticism and concern regarding its potential impact on the U.S. film industry and its global competitiveness [1] Industry Impact - The proposed tariffs are expected to significantly increase production costs for major U.S. film companies, which could undermine their competitiveness in the global market [1] - Major Hollywood companies such as Netflix, Disney, Warner Bros, and Paramount experienced stock price declines of over 2% following the announcement, indicating immediate market reaction and concern [1] Expert Opinions - Industry experts argue that while the policy is framed as a measure to "protect American films," it may actually threaten the collaborative foundation that the U.S. film industry relies on for survival, potentially leading to job losses [1] - Multiple industry associations in the U.S. are jointly urging Congress to carefully assess the economic and legal implications of the proposed tariffs [1]

每经编辑 毕陆名 当地时间周一，美股主要指数集体收跌，其中标普500指数终结"九连涨"。美国总统特朗普称拟征收电影关税，影视巨头 应声下跌，奈飞早盘一度跌4%，派拉蒙、迪士尼早盘跌超2%，随后跌幅有所收窄。 截至收盘，奈飞收跌1.94%，派拉蒙跌1.57%，迪士尼跌0.41%。 消息面上，据央视新闻6日报道，当地时间5月5日，白宫表示，尚未就电影关税做出"最终"决定。 白宫发言人库什·德赛表示，尽管尚未做出最终决定，但政府正在探索所有方案以履行特朗普的指示。 当地时间5月4日，美国总统特朗普在社交媒体上发文称，他授权美国商务部和美国贸易代表立即启动程序，对所有在外 国制作并进入美国的电影征收100%的关税，希望"再次拥有美国制作的电影"。特朗普称，美国电影业正在迅速消亡，好 莱坞正在被美国电影人和电影公司赴海外工作的趋势"摧毁"，这对美国构成"国家安全威胁"。 对此，《纽约时报》4日报道指出，关税措施可能适得其反，伤害美国本土电影，因为许多美国大型电影公司为了降低成 本或获得税收优惠，常常在海外拍摄或进行后期制作。新关税政策将导致这些公司面临更高成本，可能损害它们的全球 竞争力。 好莱坞行业媒体报道说，近年不 ...

白宫称尚未就电影关税做出最终决定。 据央视新闻客户端消息，当地时间5月5日，白宫表示，尚未就电影关税做出"最终"决定。 白宫发言人库什·德赛表示，尽管尚未做出最终决定，但政府正在探索所有方案以履行特朗普的指示。 当地时间5月4日，美国总统特朗普在社交媒体上发文称，他授权美国商务部和美国贸易代表立即启动程序，对所有在外国制作并进入美国的电影征收100%的关税， 希望"再次拥有美国制作的电影"。特朗普称，美国电影业正在迅速消亡，好莱坞正在被美国电影人和电影公司赴海外工作的趋势"摧毁"，这对美国构成"国家安全威 胁"。 受此影响，当地时间5月5日，美股流媒体股全线大跌，奈飞、华纳兄弟探索一度跌超4%，收盘跌幅有所收窄，奈飞、华纳兄弟探索收跌近2%，派拉蒙全球收跌超 1.5%，迪士尼收跌约0.4%。 对于特朗普表示将对进口电影征100%关税，《纽约时报》4日报道指出，关税措施可能适得其反，伤害美国本土电影，因为许多美国大型电影公司为了降低成本或 获得税收优惠，常常在海外拍摄或进行后期制作。新关税政策将导致这些公司面临更高成本，可能损害它们的全球竞争力。 好莱坞行业媒体报道说，近年不少美国电影公司前往英国、澳大利亚、加 ...

Core Viewpoint - Analysts expect Paramount Global-B (PARA) to report quarterly earnings of $0.30 per share, reflecting a year-over-year decline of 51.6%, with revenues projected at $7.1 billion, down 7.6% from the previous year [1]. Revenue Estimates - The consensus estimate for 'Revenues- TV Media' is $4.45 billion, indicating a decline of 14.9% year-over-year [4]. - 'Revenues- Filmed Entertainment' is estimated at $605.83 million, showing a slight increase of 0.1% from the prior year [4]. - 'Revenues- Direct-to-Consumer' is projected to reach $2.13 billion, reflecting a growth of 13.1% year-over-year [4]. - 'Revenues- Direct-to-Consumer- Advertising' is expected to be $538.94 million, up 3.6% from the previous year [5]. - 'Revenues- Filmed Entertainment- Licensing and Other' is forecasted at $475.92 million, indicating a 5.5% increase year-over-year [5]. - 'Revenues- TV Media- Advertising' is anticipated to be $1.87 billion, down 27.8% from the year-ago quarter [6]. - 'Revenues- TV Media- Affiliate and Subscription' is estimated at $1.85 billion, reflecting a decrease of 7.6% year-over-year [6]. - 'Revenues- TV Media- Licensing and Other' is projected to reach $747.77 million, indicating a year-over-year increase of 14.9% [7]. - 'Revenues- Direct-to-Consumer- Subscription' is expected to be $1.62 billion, showing a growth of 19.5% from the prior year [7]. - 'Revenues- Filmed Entertainment- Theatrical' is forecasted at $139.12 million, down 9.1% year-over-year [7]. - 'Revenues- Licensing and Other' is projected to be $1.23 billion, reflecting a 14% increase year-over-year [8]. Subscriber Estimates - Analysts estimate that 'Global Paramount Subscribers' will reach 77.50 million, compared to 71.2 million a year ago [8]. Stock Performance - Over the past month, Paramount Global-B shares have returned +3.3%, outperforming the Zacks S&P 500 composite's +0.4% change [8].

Core Viewpoint - Paramount's board is preparing to negotiate a settlement regarding a lawsuit filed by Trump, who accuses CBS of deceptive editing in an interview with Kamala Harris, a competitor in the 2024 election [1] Group 1: Legal Context - Trump's lawsuit claims that CBS's "60 Minutes" program edited an interview with Kamala Harris in a misleading manner [1] - Legal experts believe the lawsuit is baseless and that CBS is likely to win if it goes to court [1] Group 2: Company Actions - Paramount has indicated readiness to settle the lawsuit, as discussed in a board meeting on April 18 [1] - The board outlined acceptable financial terms for a potential settlement, although the specific amount remains unclear [1]