Paramount Skydance (PSKY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $6.73 billion, down 6% year-over-year, with nine-month revenue at $21.23 billion; adjusted OIBDA rose 20% to $858 million.

• Paramount+ added 3.5 million subscribers, reaching 72 million globally, and delivered 25% year-over-year revenue growth.

• D2C segment achieved profitability for the second consecutive quarter, with significant cost savings and improved streaming results.

• The company recorded a $5.98 billion goodwill impairment charge for Cable Networks and significant programming charges, impacting net results.

• Skydance transaction advanced, expected to close in H1 2025.

Financial highlights

• Adjusted OIBDA for Q3 2024 was $858 million, up 20% year-over-year; adjusted diluted EPS was $0.49.

• Free cash flow for Q3 was $214 million; for nine months, $433 million; net debt at $12.18 billion as of September 30, 2024.

• Paramount+ global subscribers reached 71.9 million at quarter-end, up from 63.4 million a year earlier.

• TV Media Q3 revenues were $4.30 billion, D2C revenues $1.86 billion, and Filmed Entertainment $590 million.

• GAAP net loss from continuing operations for Q3 was $4 million, compared to net earnings of $247 million in Q3 2023.

Outlook and guidance

• Paramount+ domestic profitability expected in 2025; international D2C profitability 12–18 months later.

• Skydance transaction expected to close in H1 2025, pending regulatory approvals.

• Q4 D2C segment will post a loss due to content marketing spend; full-year free cash flow growth expectations unchanged.

• Licensing revenue for full year 2024 expected to decline versus 2023.

• Management expects continued volatility in advertising and linear affiliate markets, with streaming growth partially offsetting declines.