Paramount Global Reports Q4 Net Loss Of $224M

Paramount Global (PARA) released its Q4 2024 earnings results on Wednesday, covering the quarter that ended December 31, 2024.

Here's a breakdown of the key financial highlights based on the latest available information:

• Revenue: Paramount reported $7.98 billion in revenue for Q4 2024, reflecting a 5% increase year-over-year from Q4 2023. This figure slightly missed Wall Street's consensus estimate of around $8.07-$8.14 billion, depending on analyst projections. The growth was driven by a strong content slate and continued momentum in its streaming business.
• Earnings Per Share (EPS): The company posted an adjusted EPS of -$0.11, a significant miss compared to the expected $0.10 to $0.13 per share forecasted by analysts. This represents a stark decline from the year-ago quarter, where EPS was positive, though exact prior-year figures vary slightly across reports.
• Operating Income: Operating income for the quarter was $129 million, down 68% from $403 million in Q4 2023, reflecting challenges in profitability despite revenue growth.
• Net Loss: Paramount reported a net loss from continuing operations of $224 million, a notable shift from a $4 million profit in Q4 2023. This underscores some of the operational and market pressures the company faced during the period.

Streaming Performance: Paramount+ showed robust growth, with revenue increasing 16% in Q4 and 33% for the full year. The service added 5.6 million subscribers in the quarter, bringing the total to approximately 77.6 million by year-end (up from 67.5 million in Q4 2023), with 10 million new subscribers gained over the full year. This growth highlights Paramount’s ongoing pivot toward streaming as a key driver of its business.

Segment Insights: 

• Direct-to-Consumer (DTC): This segment, including Paramount+ and Pluto TV, continued to perform strongly, with revenue growth fueled by subscriber gains and a 7.8% year-over-year increase projected by analysts.
• TV Media: Revenue in this segment remained flat or slightly down, impacted by a softer advertising market.
• Filmed Entertainment: Revenue saw a significant uptick, estimated at around 51.4% growth year-over-year, though exact figures vary slightly across sources.

Strategic Context: The earnings come amid Paramount’s anticipated merger with Skydance Media, an $8 billion deal facing regulatory scrutiny under the new U.S. administration. Management remains optimistic about achieving domestic Paramount+ profitability in 2025, a goal reiterated in prior quarters. The company also highlighted cost-cutting measures, including a 15% reduction in its U.S. workforce, largely completed by Q4, aiming for $500 million in annual savings.

Leadership Commentary: Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins emphasized the strength of Paramount’s content and streaming momentum, positioning the company for future growth despite current profitability challenges.

Overall, Paramount Global’s Q4 2024 earnings reflect a mixed bag: solid revenue growth and streaming success tempered by earnings misses and a net loss, against a backdrop of strategic transformation and external uncertainties tied to the Skydance merger. The stock’s performance and investor sentiment may hinge on how these results align with expectations for the company’s long-term streaming-focused strategy.