Paramount Global said it swung to a loss in the fourth quarter, as a surge in costs tied to content and restructuring offset robust performance by the media conglomerate’s film and streaming operations.
The owner of CBS, Comedy Central and the Paramount film studio said fees tied to restructuring and its looming acquisition by Skydance Media increased during the period, as did operating costs. Meanwhile, revenue at its biggest division, traditional TV, fell by 4%, owing to declines in advertising and linear TV subscriptions. Even so, the Paramount+ streaming service notched 5.6 million new subscribers during the quarter, while revenue tied to film soared on the releases of “Gladiator II” and “Sonic the Hedgehog 3.”
The company reported a loss of 33 cents per hare for the quarter and a loss of 11 cents per share when adjusted . for one time costs.
The company has pinned its hopes to making improvements in streaming, even as its large TV portfolio struggles with viewers’ growing appetite for digital delivery of content. Paramount+ “added 10 million new subscribers and delivered a 33% increase in revenue, which gives us great confidence Paramount+ will achieve full year domestic profitability for 2025,” the company’s three CEOs, George Cheeks, Chris McCarthy and Brian Robbins, said in a prepared statement.
The company said its deal with Skydance was on track to close in the first half of 2025.
During a call with investors Wednesday, Paramount CFO Naveen Chopra indicated that Paramount would continue to focus on streaming and examine costs. The company plans to continue “to invest in sports powerhouse film and TV franchises and streaming originals” while “continuing the transition of our advertising business from linear to digital” and “identifying additional cost reduction opportunities across the company.”
Traditional TV, which generates the bulk of Paramount’s revenue, however, faced headwinds. The company said revenue tied to traditional media fell 4% to nearly $4.98 billion, due to a 4% shortfall in ad sales and a 7% decline in revenue from distribution.
Filmed entertainment saw revenue surge 67% to $1.08 billion, boosted by the aforementioned film releases, and increased licensing of library titles.
Revenue from streaming and direct-to-consumer operations rose 8% to about $2.01 billion, buoyed by a 7% increase in subscriptions and a 9% increase in ad sales.
