Q3 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$15.91July 1, 2023
Final Price$12.90October 1, 2023
Price Change$-3.01
% Change-18.92%
- Paramount+ with Showtime integration is accelerating growth and profitability, with direct-to-consumer losses narrowing by 30% in the quarter, putting the company ahead of plan to reach profitability.
- A strong and balanced content slate is driving success across platforms, with five titles opening at #1 this year and franchises like Turtles and PAW Patrol contributing to revenue in theatrical releases, streaming, and merchandise. The company plans to increase its release volume to up to a dozen films in a couple of years, focusing on both franchises and new ideas.
- Sports content is integral to Paramount's strategy, with a robust portfolio including the NFL, college football (Big 10), NCAA, and golf (the Masters). Long-term deals are locked in through 2030 and beyond, contributing significantly to both distribution and advertising revenue.
- Bear Case for $PARA:*
- Direct-to-consumer (DTC) advertising growth of 18% lags behind a 46% increase in viewing hours, indicating potential monetization challenges in converting increased engagement into advertising revenue.
- The elimination of carriage of some channels in new distribution agreements could negatively impact revenue from traditional linear TV, as discussed in concerns about the Disney and Charter agreement and its implications for Paramount.