Paramount DTC subs grow to 64 million, OIBDA falls 22%

News in brief

Paramount reported continued subscription growth in its direct-to-consumer segment, adding 5.2 million subscribers (and subtracting 3.9 million ex-subscribers from Russia) to rise to 64 million total subscribers across Paramount+, Showtime, BET+, Noggin, and PlutoTV.

Paramount+ added 3.7 million net subscribers to grow to 43 million globally and grew revenue 120% following “successful” international market launches in the UK, Ireland, and South Korea.

However, the company’s adjusted operating income before depreciation and amortization (OIBDA) fell 22% to $963 as the company spent heavily on its streaming products.

Paramount’s DTC revenue increased 56% year-over-year from $767m to $1.2bn, led by 74% growth in subscription revenue and 25% increase in advertising revenue.

Paramount’s linear offerings, a bigger part of its business, were less rosy—revenue rose just 1% year-over-year, in part due to declines in advertising revenue (-6%) and affiliate and subscription revenue (-3%).

Filmed entertainment saw a big boost from Top Gun: Maverick and Sonic the Hedgehog 2, leading to a 126% increase in theatrical revenue (from $603m to $1.4bn) after cinemas were still affected by pandemic restrictions this time last year.