Revenue and Subscriber Growth - Paramount+ revenue increased 69% year-over-year in Q4, reaching 67.5 million subscribers with 4.1 million net additions in the quarter[3] - Direct-to-Consumer (DTC) revenue grew 34% year-over-year, with subscription revenue rising 43% driven by subscriber growth and pricing increases[7] - TV Media revenue declined 12% year-over-year to $5,168 million, impacted by a decrease in advertising revenue[11] - Filmed Entertainment revenue decreased 31% year-over-year to $647 million, primarily due to lower licensing revenue[17] - Global ARPU for Paramount+ expanded 31% year-over-year, indicating improved monetization strategies[3] Financial Performance - Total company revenue for Q4 was $7,638 million, a 6% decrease from $8,131 million in Q4 2022[2] - The company reported a diluted EPS from continuing operations of $0.05 in Q4 2023, a 93% improvement from a loss of $0.29 in Q4 2022[2] - Q4 2023 revenues decreased to $7,638 million from $8,131 million in Q4 2022, representing a decline of 6.1%[21] - Net earnings attributable to Paramount for Q4 2023 were $514 million, compared to $21 million in Q4 2022, showing a significant increase[21] - The basic net earnings per share attributable to Paramount for Q4 2023 was $0.77, up from $0.01 in Q4 2022[21] Costs and Expenses - Total costs and expenses for Q4 2023 were $7,234 million, down from $7,949 million in Q4 2022, a reduction of 9.0%[21] - Adjusted OIBDA for DTC improved by $85 million year-over-year, reflecting higher revenue offsetting increased costs[7] Cash Flow and Liquidity - The company generated $558 million of net operating cash flow and $443 million of free cash flow in Q4[3] - Cash and cash equivalents at the end of Q4 2023 were $2,460 million, down from $2,885 million in Q4 2022[24] - Net cash flow provided by operating activities from continuing operations was $384 million for the twelve months ended December 31, 2023, compared to a cash outflow of $142 million in 2022[26] - Free cash flow for the twelve months ended December 31, 2023, was $56 million, compared to a negative $500 million for the same period in 2022[51] Debt and Equity - Long-term debt decreased to $14,601 million in 2023 from $15,607 million in 2022, a reduction of 6.4%[24] - The total equity attributable to Paramount stockholders decreased to $22,526 million in 2023 from $23,036 million in 2022, a decline of 2.2%[24] Impairment and Restructuring Charges - The company incurred impairment charges of $83 million for the twelve months ended December 31, 2023, compared to $27 million in 2022[30] - Restructuring charges for the twelve months ended December 31, 2023, were $102 million, down from $328 million in 2022[30] Future Outlook - Paramount expects to reach domestic profitability for Paramount+ by 2025, with significant earnings growth anticipated in 2024[3] Taxation - The effective income tax rate for the quarter ended December 31, 2023, was 41.0%, while the adjusted effective income tax rate was 20.4%[33] - The reported effective income tax rate for the year ended December 31, 2023, was 28.8%, while the adjusted effective income tax rate was 20.2%[41] Other Notable Items - The company recognized a gain of $120 million from a settlement related to litigation in the fourth quarter of 2023[39] - The company recognized a $41 million gain from the contribution of certain assets of Paramount+ in the Nordics to SkyShowtime[44] - The company reported an impairment charge of $100 million related to the carrying values of FCC licenses in two markets[42]
Paramount (PARAA) - 2023 Q4 - Annual Results