Goldman Sachs analyst Michael Ng remained Not Rated on Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) on Friday.

Revenue of $7.19 billion beat Ng and consensus estimate of $7.04 billion and $7.1 billion.

Adjusted OIBDA of $688 million beat $652 million and $666 million Ng and consensus estimate driven by a broad-based beat across DTC, TV Media, and Film.

Also Read: Paramount Faces PayTV Declines, But Streaming And Licensing Gains Prompt Analyst Estimate Revisions

TV Media advertising was flat on an underlying basis on Super Bowl comps, helped by strong sports programming like March Madness and the NFL Playoffs.

Like Warner Bros. Discovery, Inc (NASDAQ:WBD), advertising outperformed, and there has been limited discernible impact from macro uncertainty, Ng noted.

DTC advertising declined 1% on an underlying basis on Super Bowl comps, which should continue throughout 2025, driven by growing industry AVOD supply (e.g., Amazon.Com Inc (NASDAQ: AMZN)) as per the analyst.

The analyst remarked that Paramount expects the proposed Skydance acquisition to close in the first half of 2025. Free cash flow of $123 million beat the analyst’s estimate of $69 million and $13 million.

DTC revenue of $2.04 billion missed the consensus estimates of $2.1 billion and $2.09 billion, with OIBDA of $(109) million above the analyst and the consensus estimates of $(128) million and $(153) million. Paramount+ subscribers increased to 79.0 million (versus Ng’s estimate of 78.6 million), and global Paramount+ revenue grew 16% (versus Ng’s estimate of +12%).

TV Media revenue of $4.54 billion beat Ng and consensus estimate of $4.39 billion and $4.43 billion, with OIBDA of $922 million beating Ng estimate of $904 million but missing consensus of $951 million.

Filmed Entertainment revenue of $627 million was above Ng and consensus estimate of $575 million and $610 million, with OIBDA of $20 million beating Ng and consensus estimate of $13 million and $17 million.

Paramount introduced second-quarter guidance including subscriber decline at Paramount+ due to content seasonality and termination of an international bundle, Paramount+ ARPU growth to accelerate off first-quarter 2025, TV Media affiliate revenue decline rates to see similar underlying trends versus first-quarter 2025, TV Media advertising to see similar underlying trends versus first-quarter 2025 in digital while deceleration in linear, OIBDA loss in Studios driven by costs associated with the release of Mission Impossible – The Final Reckoning and free cash flow to Mirror last year.

Paramount reiterated 2025 guidance, including OIBDA, which will modestly decline, including impacts from the Super Bowl, free cash flow, which will increase, including 2024 Super Bowl and political advertising impacts, and domestic profitability for Paramount+.

The analyst projects fiscal 2025 revenue of $28.7 billion and adjusted EPS of $0.81.

Price Action: PARA stock is up 0.50% by $12.00 at last check Monday.

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