Revenue Performance - Total company revenue decreased by 6% to $7.192 billion, with an 8 percentage point impact from the prior year's Super Bowl broadcast[2] - TV Media revenue decreased by 13% to $4.538 billion, impacted by the Super Bowl comparison, while advertising revenue decreased by 21%[15] - Filmed Entertainment revenue increased by 4% to $627 million, driven by the success of Sonic the Hedgehog 3 and Gladiator II[20] - Revenues for the three months ended March 31, 2025, were $7,192 million, a decrease of 6.4% compared to $7,685 million in the same period of 2024[26] Direct-to-Consumer (DTC) Performance - Direct-to-Consumer (DTC) revenue increased by 9% year-over-year, with subscription revenue growing by 16% to $1.571 billion[10] - Paramount+ reached 79 million global subscribers, up 11% year-over-year, including 1.5 million net additions in the quarter[4] - DTC adjusted OIBDA improved by $177 million year-over-year, reflecting strong revenue growth and improved profitability[10] - Direct-to-Consumer segment showed an improvement with Adjusted OIBDA loss of $(109) million in Q1 2025, compared to $(286) million in Q1 2024, a reduction of 61.8%[37] Financial Performance - Operating income for Q1 2025 was $550 million, compared to a loss of $417 million in Q1 2024, indicating a significant turnaround[26] - Net earnings attributable to Paramount for Q1 2025 were $152 million, compared to a loss of $554 million in Q1 2024, reflecting improved financial performance[26] - Basic net earnings per share from continuing operations for Q1 2025 was $0.23, compared to a loss of $0.88 in Q1 2024[26] - Reported net earnings from continuing operations for Q1 2025 were $334 million, with a diluted EPS of $0.52, while Q1 2024 reported a loss of $(635) million with a diluted EPS of $(0.88)[39] Cash Flow and Assets - The company generated $180 million of net operating cash flow and $123 million of free cash flow in the quarter[4] - Net cash flow provided by operating activities for Q1 2025 was $180 million, down from $260 million in Q1 2024[30] - Free cash flow for Q1 2025 was $123 million, compared to $209 million in Q1 2024, reflecting a decline of 41.1%[51] - Total current assets decreased to $11,973 million as of March 31, 2025, from $12,542 million at the end of 2024[28] - Total assets decreased to $45,396 million as of March 31, 2025, from $46,172 million at the end of 2024[28] - Total liabilities decreased to $28,468 million as of March 31, 2025, from $29,390 million at the end of 2024[28] Adjusted OIBDA - Adjusted OIBDA for Q1 2025 was $1,155 million, compared to $987 million in Q1 2024, indicating improved operational efficiency[35] - Total Adjusted OIBDA for Q1 2025 was $155 million, compared to $987 million in Q1 2024, reflecting a significant decline[37] - TV Media segment reported Adjusted OIBDA of $922 million in Q1 2025, down from $1,445 million in Q1 2024, indicating a decrease of approximately 36.3%[37] - Adjusted (Non-GAAP) earnings for Q1 2025 were $384 million, compared to $673 million in Q1 2024, indicating a decrease of approximately 43%[39] Other Notable Information - Paramount+ global watch time per user increased by 17% year-over-year, and churn improved by 130 basis points[4] - Skydance transactions are expected to close in the first half of 2025, pending regulatory approvals[21] - CBS is poised to be the most-watched network in primetime for the 17th consecutive season, with significant viewership for key programs[11] - The effective income tax rate for Q1 2025 was 29.9%, while the adjusted effective income tax rate was 27.9%[41] - Programming charges in Q1 2024 amounted to $1,118 million, significantly impacting the earnings, while restructuring charges were $186 million[43] - The company recognized a gain on dispositions of $35 million in Q1 2025, contributing positively to the operating income[37]
Paramount (PARAA) - 2025 Q1 - Quarterly Results