Mumbai: Media conglomerate Paramount has announced that film and strong direct-to-consumer (DTC) growth has propelled a 19 per cent rise in revenue to $7.7 million in the second quarter. Paramount+ and Pluto TV continue to drive subscriber and user momentum. Total global DTC subscribers rose to nearly 64 million, which reflects the removal of 3.9 million Russia subscribers.
Paramount+ added 4.9 million subscribers and revenue grew by 120 per cent. It expanded Pluto TV global monthly active users (MAUs) to nearly 70 million. It said that the service has extended its lead as the number one free ad-supported streaming TV service in the US. “Top Gun: Maverick” powered a 126 per cent growth in film. It surpassed “Titanic” to become the biggest Paramount movie of all time in the US. Meanwhile five Paramount Pictures movies debuted at number one at the Box Office in the first half of 2022.
Paramount president and CEO Bob Bakish said, "Paramount continues to build momentum with the assets, strategy and ability to compete—and win. In Q2, we grew total company revenue by 19 per cent and took market share in streaming, in broadcast TV, in box office and in upfront dollars, all while increasing our penetration of the most important growth market in media—streaming. At the heart of that growth was our hugely popular content—from the cultural phenomenon and #1 movie in the world, Top Gun: Maverick, to the most popular show in the country, Yellowstone. Our deep and growing library of valuable IP, coupled with the strength of our best-in-class assets, ensures we are well-positioned to continue to maximise value for our shareholders."
Paramount’s DTC revenue increased 56 per cent year-over-year. Subscription revenue grew 74 per cent year-over-year to $830 million, principally reflecting paid subscriber growth on Paramount+. The Ad revenue rose 25 per cent year-over-year, reflecting growth from Paramount+ and Pluto TV, driven by increased impressions on both services. The company’s revenue grew 120 per cent. Adjusted OIBDA (operating income before depreciation and amortisation) decreased $302 million year-over-year, reflecting increased investment in our DTC services.
TV Media revenue rose by one per cent year-over-year, reflecting growth in content licensing revenues, partially offset by lower advertising and affiliate revenues. Ad revenue decreased by six per cent year-over-year, as pricing only partially offset the impact of lower linear impressions and FX. Affiliate and subscription revenue declined by three per cent year-over-year, driven by lower revenues in international markets, where the company restructured key affiliate agreements, resulting in a shift of revenue from pay television services to DTC services. Licensing and other revenues grew 27 per cent year-over-year. Adjusted Oibda decreased by eight per cent year-over-year, primarily driven by the lower ad and affiliate revenues.
In the film segment revenue as mentioned earlier grew by 126 per cent year-over-year, led by the strong performance of current quarter theatrical releases. Theatrical revenue increased by $630 million primarily driven by the releases of “Top Gun: Maverick” and “Sonic the Hedgehog 2” in the quarter. Licensing and other revenue grew by 27 per cent year-over-year, primarily driven by the monetisation of recent theatrical releases. Adjusted OIBDA increased by $129 million in the quarter, reflecting the strong performance of current year releases.
