NEW YORK—As Paramount Global wrestled with management turmoil and ongoing negotiations for a proposed merger with Skydance, the company managed to report improved financials for its money-losing direct-to-consumer streaming segment in Q1 2024 earnings statement.
The Q1 2024 earnings showed Paramount+ adding 3.7 million subscribers in the quarter as the streaming service hit 71 million subs and Paramount+ global ARPU expanded 26% year-over-year. Paramount+ revenue grew 51%, reflecting subscriber and ARPU growth.
Overall the company’s DTC segment reported a 24% YoY bounce in revenue. Subscription revenue grew by 22%, driven by subscriber growth and pricing increases for Paramount+, and advertising revenue rose by 31%, driven by growth from Pluto TV and Paramount+, including the benefit of Super Bowl LVIII, the company said.
Operating income before depreciation and amortization (OBIDA) fell from a $511 loss in Q1 2023 to $286 million in Q1 2024.
Paramount stock was down by 4.57% at 12:20 p.m. on April 30 as Wall Street tried to make sense of the management changes—with the April 29 departure of longtime CEO Bob Bakish, the company is now being run by three executives—and the prospects for the company’s merger with Skydance or sale to another party being completed.
