Paramount’s global shares fall as fourth-quarter ad sales fall and streaming costs rise; Paramount+ gains 9.9 million subscribers; Movie bright on ‘Smile’

Paramount+ added 9.9 million subscribers to 56 million last quarter and grew revenue 81% year over year as streaming faced higher costs and wider step losses in a mixed quarter for parent company Paramount Global. Total revenue was about flat on lower ad sales. Profits fell sharply. The stock fell in premarket trading.

The studio looked rosy for horror thrillers last quarter Smilepublished on 30.9.

Total revenue of $8.1 billion was up 2% year over year. Advertising sales decreased 7% year-over-year, partly due to a negative impact of 2% from FX.

The growth in streaming subscribers was fueled by a strong content slate including the NFL, the expansion of existing franchises like Top Gun: Maverick and 1923, the success of new franchises like Tulsa King and Smile, and CBS’ overall entertainment slate

The number of global DTC subscribers has risen to more than 77 million.

Streaming revenue grew 30% year-over-year to $1.3 billion, including an 81% increase in Paramount+. Total subscription revenue increased 48% year over year, reflecting Paramount+. Streaming ad sales were up 4% and subscriptions were up 48%. Adjusted losses increased $73 million to $575 million. Costs rose from $1.57 billion to $1.97 billion.

It’s been a tumultuous few weeks for the company amid sweeping changes on the TV side as Showtime was integrated into Paramount+ and merged with MTV Entertainment Studios, a consolidation that led to layoffs including 120 internally dubbed The Valentine’s Day Massacre. this week on the premium cable network.

Some investors are taking note: Warren Buffett’s Berkshire Hathaway added another $2.4 million to its investment in Paramount last quarter

“Paramount continues to demonstrate the success of its global multiplatform strategy with a focus on popular content. Nowhere was that more evident than in the growth of Paramount+, which added a record 9.9 million subscribers in the fourth quarter, fueled by popular content like Top Gun: Maverick, 1923 and Criminal Minds: Evolution. In addition, Paramount Pictures has opened six films at #1 at the US box office through 2022, and Paramount has regained its position as the most-watched linear television media family. Our content and platform strategy is working and with even more exceptional content this year, we expect to return the company to profitable growth in 2024,” said CEO Bob Bakish.

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