Paramount Global


SKU: VIAC-2-1 Category:


It was a challenging Q1 for Paramount Global, with total revenue of $7.3 billion and the company failed to meet the revenue expectations as well as the earnings expectations of Wall Street. Affiliate and subscription revenue growth accelerated to 12%, driven by the shift to streaming. Filmed Entertainment revenue and OIBDA were impacted by the timing and performance of the film slate, but improvement is expected in the second half of the year. Free cash flow in Q1 was a use of $554 million, aligned with expectations for negative free cash flow in 2023, but positive free cash flow is anticipated in the back half of the year. The company aims to improve earnings and free cash flow through franchise content, commercial execution, and operating efficiencies, targeting positive growth in 2024. Additionally, Paramount Global is enhancing financial flexibility by reducing the quarterly dividend on common shares and restarting the sale process for noncore asset Simon & Schuster. These actions, combined with prudent capital allocation strategies and a focus on maximizing value in an uncertain macroeconomic environment, position the company to navigate challenges while seizing growth opportunities in the evolving media landscape. We give Paramount Global a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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