Financial Performance - Total revenue for the company decreased by 6% year-over-year to $6.731 billion, with a 4% decline for the nine months ended September 30, totaling $21.229 billion[3]. - Revenues for Q3 2024 were $6,731 million, a decrease of 5.6% compared to $7,133 million in Q3 2023[15]. - Operating income for Q3 2024 was $337 million, down 45.7% from $621 million in Q3 2023[15]. - Net earnings from continuing operations for Q3 2024 were $16 million, compared to $261 million in Q3 2023, reflecting a significant decline[15]. - Total revenue for the nine months ended September 30, 2024, was $1.874 billion, a decrease of 19% from $2.310 billion in 2023[9]. - The company reported impairment charges of $6,100 million for the nine months ended September 30, 2024, indicating substantial asset write-downs[15]. - Paramount reported a net loss of $5,941 million from continuing operations for the nine months ended September 30, 2024, compared to a loss of $1,259 million in the same period of 2023[18]. - Basic net earnings per share from continuing operations for Q3 2024 were $(0.01), compared to $0.36 in Q3 2023[15]. - The company reported a diluted EPS from continuing operations of $(9.04) for the nine months ended September 30, 2024, compared to $0.36 in 2023[26]. Direct-to-Consumer (DTC) Segment - Direct-to-Consumer (DTC) adjusted OIBDA improved by $287 million year-over-year to $49 million[1]. - Paramount+ experienced a revenue growth of 25% year-over-year, adding 3.5 million subscribers in the quarter, reaching a total of 72 million subscribers[1][6]. - DTC revenue increased by 10% year-over-year, with subscription revenue growing by 7% and advertising revenue rising by 18%[6][7]. - The DTC segment achieved profitability for the second consecutive quarter, improving by over $1 billion over the past four quarters[2]. - Paramount+ global ARPU expanded by 11% year-over-year[6]. Revenue Breakdown - TV Media revenue decreased by 6% to $4.298 billion, primarily due to lower affiliate revenue and fluctuations in licensing revenue[8]. - Filmed Entertainment revenue decreased 34% to $590 million compared to $891 million in the prior year[9]. - Theatrical revenue decreased 71% to $108 million, down from $377 million in the previous year[9]. - Licensing and other revenue decreased 6% to $480 million, compared to $509 million last year[9]. - Advertising revenue for the nine months decreased 52% to $10 million, down from $21 million[9]. Cost Management and Savings - The company is advancing $500 million in annual run rate cost savings through non-content cost reductions[2]. - Adjusted OIBDA for TV Media decreased by 19% to $936 million[8]. - Programming charges for the nine months ended September 30, 2024, were $1,118 million, significantly lower than $2,371 million in the same period of 2023[15]. - The company incurred restructuring and transaction-related costs of $44 million as part of its operational transformation initiatives[30]. Asset and Equity Changes - Total current assets decreased to $11,925 million as of September 30, 2024, from $12,703 million at December 31, 2023[16]. - Total Paramount stockholders' equity decreased to $16,628 million as of September 30, 2024, down from $22,526 million at December 31, 2023[16]. - Long-term debt remained relatively stable at $14,495 million as of September 30, 2024, compared to $14,601 million at December 31, 2023[16]. Cash Flow and Investments - Net cash flow provided by operating activities from continuing operations was $584 million for the nine months ended September 30, 2024, compared to a cash outflow of $174 million in 2023[18]. - Free cash flow for Q3 2024 was $214 million, down from $377 million in Q3 2023, while free cash flow for the nine months ended September 30, 2024 was $433 million compared to $(387) million in the same period of 2023[36]. - The company recognized stock-based compensation expenses of $175 million for the nine months ended September 30, 2024, compared to $131 million in 2023[18]. - Paramount's net cash flow used for investing activities was $(317) million for the nine months ended September 30, 2024, compared to $(344) million in 2023[18]. Impairment and Charges - The company recorded a goodwill impairment charge of $5.98 billion during the second quarter of 2024[4]. - The company incurred impairment charges of $6,100 million during the nine months ended September 30, 2024, significantly impacting net earnings[18]. Future Transactions - Completion of the Skydance transactions is anticipated to close in the first half of 2025, subject to regulatory approvals[10]. - Paramount continues to operate in the normal course of business until the Skydance transactions are finalized[10]. Strategic Goals - The company aims to utilize free cash flow for servicing debt, paying dividends, and making strategic acquisitions[33]. - The adjusted effective income tax rate for the nine months ended September 30, 2024, was 21.8%, compared to 5.6% for the same period in 2023[28].
Paramount (PARAA) - 2024 Q3 - Quarterly Results