Paramount Global Reports 6% Revenue Decline to $7.19 Billion in Q1 2025

Paramount Global reported its financial results for the first quarter of 2025, revealing a revenue decline of 6% to $7.19 billion, down from $7.69 billion in the same period last year. The decrease was primarily attributed to the absence of a comparable Super Bowl broadcast, which had significantly boosted revenues in the first quarter of 2024. Despite this, the company saw growth in affiliate and subscription revenues, which increased by 1% to $3.40 billion, driven by higher streaming subscription fees, particularly for Paramount+. The company reported an operating income of $550 million, a notable recovery from an operating loss of $417 million in the prior year, aided by a $35 million gain on dispositions and lower overall costs.

In terms of operational metrics, Paramount+ subscribers grew to 79 million, up from 71.2 million a year earlier, reflecting a 11% increase. The Direct-to-Consumer segment generated $2.04 billion in revenue, a 9% increase compared to the previous year, while the Filmed Entertainment segment also saw a revenue increase of 4% to $627 million. However, the TV Media segment experienced a 13% decline in revenues, primarily due to the lack of Super Bowl-related advertising revenue.

The company undertook significant restructuring efforts, incurring $85 million in related charges during the quarter, compared to $186 million in the same period last year. Paramount's total costs and expenses decreased to $6.68 billion from $8.10 billion, reflecting a strategic shift in content management and operational efficiencies. The company also reported a net earnings attributable to Paramount of $152 million, or $0.22 per diluted share, a significant turnaround from a net loss of $554 million, or $0.87 per diluted share, in the prior year.

Looking ahead, Paramount is navigating a transformative period marked by its planned merger with Skydance Media, which is expected to close in the first half of 2025. This merger aims to create a new holding company, New Paramount, and is anticipated to enhance the company's market position and operational capabilities. The company is also focused on managing its debt, which stood at $14.51 billion as of March 31, 2025, and maintaining liquidity through its $3.50 billion revolving credit facility. Paramount's management remains cautious about macroeconomic conditions and their potential impact on advertising revenues and overall business performance.