• by Wayne Friedman , February 28, 2024

Paramount Global missed on analysts' fourth-quarter revenue projections -- sinking 6% to $7.6 billion -- but posted operating income 122% higher to $404 million, with free cash flow (FCF) turning positive to $443 million.

Paramount+, Paramount Global's big streaming app, will achieve domestic profitability by 2025, the company projects. It added 4.1 million subscribers in the fourth quarter to total 67.5 million globally.

The company trimmed its adjusted operating income before depreciation and amortization (OIBDA) -- to $490 million from $575 million in the year-ago period. 

Advertising revenue for all Paramount Global direct-to-consumer (D2C) businesses -- Paramount+ and Pluto TV -- grew 14% to $526 million. 

D2C subscription revenue grew 43% to $1.3 billion, with all D2C revenue up 34% to $1.9 billion. The average revenue per user grew 31%.

Traditional/linear TV media businesses sank 12% to $5.2 billion, with a huge piece, advertising, seeing 15% decline to $2.3 billion. Contributing to this negative result, was lower revenue from licensing,  down 25% to $882 million.

Showing combined linear TV and streaming financial strength to an extent, Paramount Global says total affiliate/subscription revenues grew 13% in the most recent fourth quarter. 

Film revenue sank 31% to $647 million -- from lower licensing revenue (down 32% to $566 million).

Company stock -- which has taken a beating since early December due to expected weaker positive linear TV results vs. slower-growing D2C business -- was down 2% to $11.06 at the close of Wednesday trading. 

This story has been updated.