Paramount CFO says ‘working toward’ previously guided FY25 OIBDA and FCF

Navin Chopra, CFO, stated: “In Digital Advertising, we expect trends in Q2 to look similar to the underlying trends in Q1. At Paramount (PARA) plus we continue to expect healthy revenue growth, driven by an acceleration in ARPU, consistent with our plan to achieve domestic P plus profitability this year. Additionally, the combination of our traditional and streaming businesses will again yield net growth in total company affiliate and subscription revenue, a key indicator of our ongoing transition to streaming. Q2 subscribers will decline given the combination of content seasonality and the termination of an international hard bundle partnership. In film, we expect strong revenue contribution from the release of The Final Reckoning. However, given the timing of marketing spend for the film, we anticipate that the segment will generate an OIBDA loss for the quarter. In terms of free cash flow, we expect Q2 to look similar to last year, including cash restructuring payments of approximately $100,000,000 Looking further ahead, our priorities for the full year have not changed. We continue to expect to deliver Paramount plus domestic profitability for 2025. We are also working toward the full year OIBDA and free cash flow outlook we provided on our Q4 call. Though growing macroeconomic uncertainty, particularly in advertising, has the potential to impact our results later in the year. In the meantime, we continue to proactively manage spend while prioritizing investment in key growth initiatives. Coming into 2025, we have continued driving D2C growth and significant improvements to profitability, leveraging the powerful reach of broadcast while capturing cost efficiencies, and maximizing the value of our deep library and iconic IP. Although we are operating in a dynamic macro environment, the progress we’ve made on our strategic priorities, combined with focused execution and some of the industry’s most compelling and enduring content, positions Paramount Global for the long term.” Comments taken from Q1 earnings conference call.