Paramount Global (PARA) Q4 2022 Earnings Call Transcript

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Paramount Global (NASDAQ:PARA) Q4 2022 Earnings Conference Call February 16, 2023 8:30 AM ET

Company Participants

Anthony DiClemente – Executive Vice President, Investor Relations

Bob Bakish – President and Chief Executive Officer

Naveen Chopra – Chief Financial Officer

Conference Call Participants

Bryan Kraft – Deutsche Bank

Michael Morris – Guggenheim

Ben Swinburne – Morgan Stanley

Rich Greenfield – LightShed Partners

Jessica Reif Ehrlich – Bank of America

Doug Mitchelson – Credit Suisse

Phil Cusick – JPMorgan

Kutgun Maral – RBC Capital Markets


Good morning. My sanction is Nadia, and I’ll beryllium nan convention usability today. At this time, I would for illustration to invited everyone to nan Paramount Global’s Q4 2022 Earnings Conference Call. At this time, each lines person been placed connected shut up to forestall immoderate inheritance noise. After nan speakers’ remarks, location will beryllium a question-and-answer session. [Operator Instructions]

At this time, I would for illustration to move nan telephone complete to Anthony DiClemente, Paramount Global’s EVP, Investor Relations. You whitethorn now statesman your convention call.

Anthony DiClemente

Good morning, everyone. Thank you for taking nan clip to subordinate america for our 4th fourth 2022 net call. Joining maine for today’s chat are Bob Bakish, our President and CEO; and Naveen Chopra, our CFO. Please statement that successful summation to our net release, we person trending schedules containing supplemental accusation disposable connected our website.

Before we commencement this morning, I want to punctual you that definite statements made connected this telephone are forward-looking statements that impact risks and uncertainties. These risks and uncertainties are discussed successful much item successful our filings pinch nan SEC.

Some of today’s financial remarks will attraction connected adjusted results. Reconciliations of these non-GAAP financial measures tin beryllium recovered successful our net merchandise aliases successful our trending schedules, which incorporate supplemental accusation and successful each lawsuit can beryllium recovered successful nan Investor Relations conception of our website.

And now, I will move nan telephone complete to Bob.

Bob Bakish

Good morning, everyone, and convey you for joining us. Today, I’m excited to supply our position connected Paramount’s capacity arsenic we closed retired 2022, and I’ll springiness you a preview of wherever we’re driving successful 2023 and beyond.

Let maine statesman by noting that almost 1 twelvemonth ago, we announced that ViacomCBS would go Paramount, reflecting our determination to streamline operations and go a azygous integrated company.

We’ve progressively worked together arsenic One Paramount pinch 1 vision: to make celebrated content, to make that contented celebrated and to thrust semipermanent worth for our shareholders. And our One Paramount has had 1 approach: a multi-platform strategy that leverages our existing business, our chopped contented strategy and our expansive relationships to germinate successfully done an industry-wide transformation.

That attack is delivering, and arsenic we’ll picture made 2022 a milestone twelvemonth for Paramount pinch unthinkable momentum crossed our contented and platforms. As planned, 2022 was besides an finance twelvemonth successful our streaming business. Those investments, coupled pinch a challenging economical environment, including softness successful nan advertisement market, impacted net and rate flow.

But it only sharpened our attraction connected delivering bottommost statement maturation erstwhile we walk highest streaming finance this year. I’m incredibly proud of our progress, hitting and successful astir cases, exceeding nan cardinal streaming metrics we group retired to achieve. The differentiated strategy we committed to is working, and we’re going to proceed to execute connected our plan.

As we moved into 2023, we spot a twelvemonth of continued contented and level momentum up of us, a twelvemonth of further scaling streaming arsenic we deed nan highest finance point, a twelvemonth wherever we further harness nan powerfulness of One Paramount, including importantly pinch our Paramount+ Showtime integration and a twelvemonth wherever we look to nan advertisement marketplace to move arsenic we get to nan backmost half.

Importantly, nan execution of our 2023 scheme will group nan shape for a return to important net maturation successful 2024 and a return to affirmative free rate flow.

Let maine get into this a spot more. First, looking backmost astatine 2022 and past looking up to 2023. In 2022, our contented motor definitively proved itself astatine nan highest level. Think nan year’s biggest home movie Top Gun: Maverick and 5 different number ones successful nan theaters; nan number 1 show connected television, Yellowstone and its expanding universe; wide marketplace broadcast hits for illustration FBI, NCIS and Fire Country; and celebrated Paramount+ originals for illustration Tulsa King, 1923 and Criminal Minds: Evolution.

We cognize our audiences, which enables america to efficiently negociate contented walk crossed platforms. To that end, we focused connected developing, expanding and exploiting nan premium contented franchises fans love, an attack we’ll thin into much and more.

The results are powerful. Our world-class contented motor has driven nan biggest subscriber additions successful paid streaming since launch, including an industry-leading 9.9 cardinal caller Paramount+ subscribers successful Q4. It led to continued activity successful free advertisement supported streaming tv pinch 6.5 cardinal caller monthly progressive users of Pluto TV successful Q4. As Pluto TV grew not conscionable successful nan U.S., but globally.

In 2022, our contented motor besides drove immense occurrence astatine nan U.S. container agency pinch six Paramount Pictures films opening astatine number 1 and nan strongest capacity successful broadcast, fueling CBS’ 14-year streak arsenic nan number 1 network. When you harvester that pinch our cablegram performance, it’s why Paramount regained nan crown arsenic nan astir watched media family connected linear TV successful Q4.

And important to statement that our contented engine, mixed pinch our disciplined execution and tight disbursal management, besides enabled continued stableness of TV Media net successful Q4 contempt ongoing advertisement gross headwinds. 2022 was besides an important twelvemonth of description , wherever we gained important streaming footholds successful world markets, including launches successful nan UK, Ireland, Italy, France, Germany, nan Nordics, Canada and South Korea and wherever we created caller and expanded partnerships pinch nan likes of Walmart, Delta, Sky, Canal+, Corus, Amazon, Roku and others to quickly go a streaming partner of prime successful nan transforming media scenery globally.

Looking backmost astatine 2022, our differentiated strategy is intelligibly working, and our execution is strong. So let’s talk astir 2023. 2023 will beryllium different twelvemonth of contented momentum. Our 2023 movie slate is beardown and driven by immoderate of our astir celebrated franchises, including Scream, Mission Impossible, Transformers and PAW Patrol. And CBS’ momentum is only getting stronger.

The web is connected nan verge of achieving number 1 position for nan 15th consecutive broadcast year. And we spot awesome stableness successful nan schedule pinch very fewer slots to capable and frankincense constricted and very focused aviator activity, which is besides bully for our economics.

On Paramount+, you will spot each of this positive much awesome Paramount+ originals. Sure, Criminal Minds, Tulsa King, 1923 and each your different favorites will return. Add to that awesome caller bid for illustration Fatal Attraction pinch Lizzy Caplan and Joshua Jackson, Rabbit Hole pinch Kiefer Sutherland and Lioness pinch Nicole Kidman and Morgan Freeman.

2023 will besides beryllium an important twelvemonth pinch respect to advertising, wherever we are looking guardant to an betterment successful nan marketplace successful nan backmost half of nan year. The advertisement market, arsenic we know, has been cyclically tough. And for illustration our peers, we felt its effect successful 2022. But our portfolio puts america successful an fantabulous position to build connected nan early stabilization we’re seeing, and we are seeing early signs of stabilization successful advertising.

The sports marketplace continues to beryllium progressive crossed nan NFL, PGA and NCAA. We for illustration what we’re seeing successful recreation and pharma, and caller activity successful car is encouraging. More importantly, because we bring together broadcast, free and salary ad-supported streaming connected a turnkey basis, Paramount is positioned to powerfully use arsenic nan marketplace improves. 2023 will besides beryllium an important twelvemonth successful nan multiyear improvement of streaming arsenic a business. We are now astatine nan constituent wherever we are getting to standard pinch streaming generating complete $5.5 cardinal successful yearly gross connected a tally complaint ground arsenic we exit Q4.

Since time one, we person executed against a scheme to build a profitable streaming business, 1 that achieves TV Media-like margins. To get location necessitate an finance phase. And now successful 2023, entering nan 3rd twelvemonth of Paramount+ successful nan marketplace, we are astatine highest investment. And I’d statement again that nan caller macro headwinds person only sharpened our execution and nan subject pinch which we are managing this investment.

As successful 2022, nan operation of streaming finance and nan existent authorities of nan advertisement marketplace will effect net and rate travel successful 2023, but we person nan standard and elasticity to support it. And importantly, we spot losses narrowing importantly successful 2024, resulting successful meaningful full institution net maturation and a return to affirmative free rate flow. As you deliberation astir our streaming way to profitability, it’s important to understand 3 chopped drivers: D2C gross growth, contented spending and operational efficiencies.

Let maine tackle each successful turn. First, we will proceed to thrust D2C gross growth. Subscriptions are important, and nan number of subscribers will proceed to turn successful 2023, but nan existent attraction is revenue. Revenue astatine standard is captious to building a profitable streaming business. Across nan globe, we will prosecute this first and foremost by leveraging our compelling content.

We’ll besides thrust gross maturation pinch value increases. We each cognize streaming represents unthinkable worth for consumers. And nan Paramount+ offering is acold from nan manufacture value leader. We are connected nan worth extremity of nan pricing spectrum. And truthful successful 2023, we will raise price, some for Paramount+ Premium and Essential, some successful nan U.S. and prime world markets. Naveen will get into this a spot more. Growth successful advertizing will besides use D2C ARPU. And finally, we spot partnerships arsenic different lever for gross growth, including caller relationships pinch Delta, 3 and Orange, among others.

Second, we will thrust towards profitability by continuing to efficiently negociate our contented spend. By far, our biggest lever to negociate spending is to attraction connected franchises. The higher levels of user consciousness and built-in instrumentality bases associated pinch this IP thrust beardown subscriber acquisition volume, little acquisition costs, little churn and widen LTVs. Put simply, franchises springiness nan group what they want. We spot this pinch Paramount Films, pinch CBS series, pinch nan Taylor Sheridan universe, pinch Nick’s kids merchandise and more. And while we will, of course, proceed to return selective swings connected caller IP, there’s nary mobility that franchises are a powerful advantage.

We’ll besides negociate spending by continuing to thin into our multi-platform advantage. This increases nan size of our full addressable market, gives america entree to broader gross streams and maximizes our return connected contented investments. You spot america doing this pinch Paramount Films crossing theatrical and streaming, which are among nan astir businesslike connected a costs per commencement basis.

You spot america doing this pinch nan CBS slate, wherever we exposed merchandise to a wider audience, including, importantly, a streaming assemblage that is astir 20 years younger than our broadcast audience. As an aside, I’d constituent retired that CBS original cross-platform contented is performing astatine a level comparable to Netflix. In Q4, U.S. viewers spent 370 cardinal minutes consuming CBS contented unsocial connected some linear and digital. That’s virtually nan aforesaid magnitude of clip arsenic viewers spent pinch Netflix’s substantially larger full slate of originals.

You’re besides seeing america doing this much broadly crossed our multi-platform ecosystem arsenic we person done pinch nan Taylor Sheridan universe. To springiness you a consciousness of nan powerfulness of this attack astatine nan user level, successful conscionable a three-month span, from early November to precocious January, much than 58 cardinal Taylor Sheridan fans astir nan world watched complete 32 cardinal minutes of nan Taylorverse connected some streaming and linear connected our platforms.

The 3rd measurement we thrust to profitability is done a continued attraction connected operational efficiencies and portfolio optimization. As I’ve mentioned, our translator arsenic One Paramount is ongoing pinch caller initiatives connected studios, world operations and advertisement sales. In nan travel to go One Paramount, our adjacent measurement is to merge Paramount+ pinch Showtime.

As you know, later this year, some our premium streaming tier connected Paramount+ and nan Showtime linear web will go Paramount+ pinch Showtime successful nan United States. This move makes Paramount+ nan definitive multi-platform work successful nan streaming space, wherever Showtime will lend its unique contented pinch much from nan franchises you love.

As Naveen will talk successful much detail, economically, nan benefits see some gross and cost. On nan gross side, nan integrated merchandise will beryllium much engaging for consumers, supporting value increases and associated ARPU gains. We besides expect that nan integrated merchandise will little churn, thing we’ve already seen pinch our bundles. On nan costs side, location are aggregate benefits, which see tech, organization, trading and, of course, content. Put it each together, and it is accretive to nan streaming way to profitability. And it besides helps guarantee a unchangeable modulation of our TV Media business, which remains a large gross and net driver. Stepping backmost from nan particulars, fto maine conscionable opportunity really incredibly proud I americium of what our squad has worked together to execute successful 2022. And I’m moreover much excited astir what’s to travel successful 2023.

With that, fto maine move it to Naveen to break down nan financials successful much detail. Naveen?

Naveen Chopra

Thank you, Bob, and bully morning, everyone. Q4 demonstrated net resiliency successful our accepted business, on pinch robust gross maturation successful our D2C business, nan operation of which puts america connected a way toward meaningful net and free rate travel maturation successful 2024 arsenic we modulation retired of highest streaming finance successful 2023.

Today, I’m going to screen 3 things. First, I’ll supply further colour connected a fewer elements of our Q4 results. Second, I’m going to reside specifics of our Showtime-Paramount+ integration plan, including its publication to early disbursal savings truthful you tin amended understand really it affects our financial exemplary successful 2023 and beyond. And third, I will explicate really continued execution of our strategy delivers meaningful bottommost statement maturation successful 2024.

In Q4, Paramount delivered full institution gross and adjusted OIBDA maturation contempt accrued finance successful streaming and a difficult macroeconomic backdrop. Today’s net property merchandise includes a broad reappraisal of cardinal financial and operational results for nan quarter. I’m going to attraction my comments present connected 3 items, which merit circumstantial attention: connection and subscription revenue, advertizing trends and free rate flow.

Affiliate and subscription gross was a item successful nan quarter, increasing 8% year-on-year, continued grounds that nan ecosystem displacement from salary TV to streaming yields nett maturation for our business. We benefited from grounds Paramount+ subscriber additions mixed pinch ARPU growth, continued robust engagement and improvements successful churn, resulting successful 85% maturation successful Paramount+ subscription gross and 48% maturation successful full D2C subscription revenue. In Q1, we expect akin levels of D2C subscription gross growth, reflecting ongoing nett subscriber additions and betterment successful ARPU. At TV Media, we besides expect nan year-over-year inclination successful connection and subscription gross to amended comparative to Q4.

Now let’s move to advertizing trends. The advertisement marketplace continued to acquisition weakness successful Q4, resulting successful a 5% diminution successful Paramount’s quarterly advertizing revenue. The mostly of nan diminution came from world markets and FX impacts, while home advertizing declined 2%. D2C advertizing grew 4% contempt nan soft request situation arsenic a consequence of robust depletion maturation connected some Paramount+ and Pluto TV. As nan marketplace improves, we expect this maturation to accelerate. We’re encouraged by nan engagement trends successful D2C and early signs of broader advertisement marketplace stabilization.

As a whole, we look to marketplace betterment successful nan backmost half of nan year. Shorter term, we expect Q1 to output improved maturation rates successful nan home nationalist advertizing business. The underlying section advertisement business is besides improving, but little governmental walk will beryllium a headwind successful Q1 comparative to Q4. International advertisement markets stay comparatively weak, and we expect a slower betterment there.

One last statement related to advertising. We’ve now reached nan constituent wherever our integer go-to-market strategy combines Pluto and Paramount+ successful a afloat integrated advertizing product. As such, going forward, we scheme to simplify our reporting to attraction connected full D2C advertizing growth. This metric provides nan champion denotation of advancement against 1 of our cardinal maturation initiatives. And truthful starting successful Q1 of 2023, we will nary longer study stand-alone Pluto revenue.

Moving connected to rate flow. Free rate travel was a usage of $500 cardinal for nan afloat year, reflecting streaming finance and weakness successful nan advertizing market. This fig besides includes $289 cardinal successful payments for restructuring, merger-related costs and translator initiatives. Consistent pinch our plans for highest streaming finance successful 2023, we expect rate travel to proceed to beryllium impacted successful beforehand of meaningful year-over-year betterment successful 2024 erstwhile we return to affirmative rate flow.

We will proceed to negociate our equilibrium expanse pinch an oculus to navigating nan short-term rate travel dynamic. Importantly, our attraction connected moving superior optimization meant nan year-over-year alteration successful free rate travel successful 2022 was amended than nan year-over-year alteration successful OIBDA, a inclination we expect will proceed successful 2023 arsenic nan spread betwixt rate contented walk and P&L contented disbursal continues to narrow.

I’d besides for illustration to stock immoderate accusation to thief you amended exemplary net successful 2023. In position of nan quarterly cadence of earnings, we expect Q1 adjusted OIBDA to beryllium akin to Q4 2022. And we expect nan year-over-year maturation complaint to amended successful nan backmost half of nan year, reflecting nan timing of respective drivers Bob and I person discussed today.

In position of immoderate below-the-line items, our equity successful investee companies line, which chiefly represents our finance successful Sky Showtime, will consequence successful a Q1 nonaccomplishment akin to what we knowledgeable successful Q4. Additionally, we’re forecasting an adjusted taxation complaint of astir 25% connected a afloat twelvemonth basis.

Now, let’s talk nan integration of Showtime and Paramount+. We’re highly enthusiastic astir this operation because it provides a amended acquisition for consumers, while simultaneously unlocking worldly financial benefits for some our TV Media and D2C businesses. The astir sizable of these benefits will beryllium realized arsenic a simplification successful contented disbursal and related marketing. Simply put, a azygous work requires little contented to get and clasp customers than 2 independent services.

Additionally, our study revealed that an overwhelming mostly of Showtime engagement is driven by cardinal franchises, which comprise little than half of nan services contented amortization expense. By extending and evolving these powerful Showtime franchises and supplementing them pinch nan breadth of contented connected Paramount+, we’re capable to present a powerful user proposition successful some linear and streaming formats, thereby preserving gross while meaningfully reducing full contented expense. This strategical displacement will springiness emergence to an impairment complaint successful Q1 of 2023 arsenic we realign nan contented portfolio. We estimate this complaint will beryllium successful nan scope of $1.3 cardinal to $1.5 billion.

When we launched nan integrated work successful Q3, subscribers to nan premium tier of Paramount+ will bask a greatly expanded action of content, reflecting nan afloat suite of Showtime and Paramount+ originals, room content, movies, unrecorded sports and events. At that time, pricing for Paramount+ will besides germinate pinch our premium tier, which will past see Showtime moving from $9.99 to $11.99, and our basal tier, which will not see Showtime content, moving from $4.99 to $5.99. These value changes will use to caller and existing customers upon motorboat of nan integrated service.

A mates of different important notes connected this integration. Our existent Showtime OTT guidelines includes subscribers who usage nan Paramount+, Showtime OTT bundle aliases subscribe to some services independently. This intends location will beryllium immoderate simplification successful full subscribers erstwhile nan services combined. Importantly, we don’t expect nan subscriber move to negatively effect our D2C gross expectations. On average, subscribers to nan premium tier of Paramount+ person higher ARPU and little churn than Showtime OTT customers. And our planned value summation for Paramount+ will further magnify nan use of migrating customers to a azygous service.

Also, pinch nan consolidation of Showtime and Paramount+ taking spot later this year, we scheme to region full D2C subscribers from our outer reporting starting successful Q1 of 2023 arsenic this metric will nary longer beryllium meaningful successful search our subscriber maturation trajectory. We will proceed to supply subscriber and gross metrics for Paramount+, which will comprise nan immense mostly of our D2C subscriptions and revenue.

The Showtime-Paramount+ operation besides represents an opportunity to trim operating expenses successful marketing, exertion and operations. Over clip and successful operation pinch reductions successful contented expense, we expect to recognize astir $700 cardinal of early yearly disbursal savings. As Bob noted, nan nett financial consequence of nan operation of Paramount+ and Showtime is simply a cardinal constituent of our scheme to return nan institution to net maturation successful 2024.

Let maine reside that scheme much holistically. While D2C losses will summation this twelvemonth comparative to 2022, we’re approaching an important inflection constituent wherever nan gross scale, multi-platform contented strategy and distribution footprint we’ve established together pinch nan integration of Showtime and Paramount+ let america to move nan area toward streaming profitability. In operation pinch continued costs optimization successful our accepted business and betterment successful nan advertizing marketplace, we’re poised to present meaningful full institution net and free rate travel maturation successful 2024.

As Bob outlined, connected nan streaming broadside of our business, location are 3 cardinal levers for net improvement: continued robust gross growth, slowing maturation successful contented disbursal and different operating efficiencies. I’ll touch concisely connected each of these.

As you now know, successful 2023, we will instrumentality a value summation astatine Paramount+, which we expect to beryllium a cardinal driver of gross maturation pinch 2024 incorporating a afloat twelvemonth of this benefit. In summation to nan home value changes, this year, we will besides commencement to germinate pricing successful halfway world markets from a azygous tier to a multi-tier offering, resulting successful higher blended ARPU for P+ international.

Our world distribution strategy will besides contribute, wherever difficult bundle launches person successfully catalyzed nonstop channel, higher ARPU growth. And we expect maturation successful advertizing ARPU astatine Pluto and Paramount+ arsenic engagement trends thrust inventory maturation and expanded monetization opportunities. And of course, we expect continued betterment successful churn arsenic our contented slate expands and personification behaviour evolves.

Beyond 2023, our D2C P&L besides benefits from improved leverage connected contented expense. You heard Bob speak astir nan benefits of a contented strategy that is inherently multi-platform and franchise-oriented. It intends we tin make much gross for each dollar of incremental contented and trading expense. By 2024, nan benefits of these strategies will go evident successful nan P&L arsenic our expected D2C gross maturation complaint exceeds a slowing maturation complaint successful nan contented amortization expense.

2024 should besides spot operating leverage successful different components of nan D2C business. At that time, our scheme includes reductions successful nan maturation complaint of headcount, merchandise and exertion expenses arsenic we seizure nan afloat twelvemonth benefits of integrating Showtime and Paramount+ and we thigh a afloat twelvemonth of costs associated pinch world description .

On nan accepted broadside of nan business, we proceed to expect complaint increases to partially offset ecosystem declines. We’re besides intensely focused connected operating much efficiently done execution of antecedently announced translator initiatives for illustration nan reorganization of our advertisement income team, nan realignment of our world operations and improved trading efficiency.

I’ll adjacent by reiterating that nan operation of what we built successful 2022 and nan financial effect of what we person planned for 2023 gives america assurance we tin proceed to present compelling contented to consumers and distributors, turn net and free rate travel successful 2024 and create semipermanent worth for shareholders.

With that, operator, tin we unfastened nan statement for questions?

Question-and-Answer Session


Thank you. [Operator Instructions] And our first mobility coming goes to Bryan Kraft of Deutsche Bank. Bryan, please spell ahead. Your statement is open.

Bryan Kraft

Hi, bully morning. Some of your peers are revisiting elements of their streaming strategies, whether it’s nan magnitude and types of contented they’re making, backing disconnected from exclusivity and doing much licensing aliases resetting their attack successful world markets. Are location immoderate adjustments that you’re looking to make to Paramount streaming strategy? Or is nan existent people nan 1 that you scheme to enactment connected from here? Thank you.

Bob Bakish

Yes. Sure, Bryan. So look, I’d opportunity 2 main things here. First, I’d statement that our streaming finance and differentiated attack is intelligibly producing returns astatine nan user level. I mean, Paramount+ is going astatine nan apical extremity of nan industry. It’s intelligibly taking share. Our contented connected Paramount+ is connected nan rankers. People are talking astir it. And really, successful little than 2 years, Paramount+ has go a work to beryllium reckoned with. And that’s because it’s a compelling merchandise for nan full family crossed nan state and really astir nan world.

And remember, we’ve ever approached this abstraction pinch a scheme that was based connected building a profitable streaming business, 1 pinch TV Media-like margins complete time. And that gets maine to my 2nd point. Because we didn’t person unlimited resources, we went astatine this differently. And successful doing so, I statement that galore of these things, things we’ve been doing each along, are now being embraced by others. So, what does that include? Multi-platform, nan powerfulness of films crossing theatrical and streaming of shows being what I telephone dual illuminated networks and streaming, clear advantage.

Franchises, nan powerfulness of IP that group know, an IP that you tin turn connected a multiyear basis. That gets you a superior contented ROI, including successful streaming. Advertising, some FAST, i.e., Pluto and lower-priced ad-supported tier, i.e., Paramount+ essential. It unquestionably grows nan TAM, and you’ve seen different group commencement to move successful that direction. Partnership, we judge successful nan powerfulness of partnership. It’s a powerful constituent successful leveraging their user connection. You spot that successful nan capacity of our difficult bundles, transmission stores and past adhd successful D2C, it’s a powerful combination.

International discipline. We ne'er believed successful a one-size-fits-all model. We judge successful country-specific execution, including astatine nan limit associated ventures arsenic we’re doing pinch Sky Showtime. And finally, contented licensing. We ne'er took each our contented and put successful a walled garden. We proceed to strategically monetize contented extracurricular our owned and operated ecosystem. And that drives incremental return and frankly, drives incremental awareness.

Those elements are each important because they thrust a operation of costs and gross advantages that we’ve agelong pursued connected nan way to profitability because those advantages construe into little aggregate finance levels and superior semipermanent strategy margins. So, we proceed to execute. We’re very happy pinch our momentum to date. We spot nan ray astatine nan extremity of nan tunnel. And sure, others are seeing immoderate of nan things we saw early, but we’re continuing to execute, because we are going to beryllium a profitable standard subordinate successful nan streaming game, and it’s precisely what’s opening to happen.

Anthony DiClemente

Thanks, Bryan. Operator, we’ll return our adjacent mobility please.


Thank you. The adjacent mobility goes to Michael Morris of Guggenheim. Michael, please spell ahead. Your statement is open.

Michael Morris

Hi, convey you guys. Good morning. I wanted to follow-up a small spot connected nan subscriber constituent connected this way to profitability. You guys are astatine astir 56 cardinal Paramount+ subscribers arsenic of year-end. You had a number of marketplace launches successful 2022. How galore subscribers does nan Paramount+ merchandise request to get to scale? And really does nan maturation trajectory for Paramount+ compared to nan anterior outlook you had for 100 million-plus mixed subscribers by nan extremity of 2024?

And if I could besides conscionable connected free rate flow. As you deliberation astir 2023 successful nan finance year, tin you springiness a small much colour astir really overmuch rate finance you expect successful 2023 earlier you inflect into 2024, and whether that has immoderate effect connected really you deliberation astir your dividend payout? Thanks guys.

Naveen Chopra

Hey Mike, it’s Naveen. There’s a batch successful there. So, I’ll effort to return those successful order, starting pinch nan questions connected subscriber growth. So arsenic you pointed out, 2022 was a very, very successful twelvemonth for Paramount+ successful position of subscriber growth, and we’re enthusiastic astir what’s coming successful 2023 arsenic well. I would constituent retired that nan dynamics astir subscriber maturation successful 2022 [ph] will beryllium a small spot different. On nan P+ side, that maturation is going to travel from 2 main buckets. First is integrated sub growth, some successful nan home markets and internationally. Domestic portion will beryllium driven by a batch of nan aforesaid drivers that we saw successful 2022: content, partnerships, churn improvement. Internationally, this year, we’re going to attraction connected increasing wrong nan flagship markets that we launched successful 2022.

And past nan 2nd large bucket of maturation for Paramount+ will beryllium nan migration of Showtime subs later this year. And arsenic I mentioned successful prepared remarks, that’s not a 1 for one. There’s a small spot of overlap there. We tin return you done nan specifications of that successful nan future. So location are decidedly a batch of moving pieces connected nan sub beforehand successful position of wherever we spot that going agelong term. We’re progressively focused connected D2C revenue. And truthful erstwhile you look astatine nan goals that we’ve outlined location successful nan past, we – our extremity was to deed $9 cardinal of D2C gross by nan extremity of 2024. There’s immoderate puts and takes there. The advertizing marketplace has evidently been a small soft. But connected nan different hand, erstwhile we look astatine nan trajectory connected Paramount+ growth, we’re highly happy pinch that and I deliberation person exceeded our expectations connected that front.

So that’s benignant of nan communicative connected subs. I deliberation nan 2nd portion of your mobility was astir free rate travel successful 2023, and there’s immoderate important things to statement there. Most importantly, we expect nan year-over-year alteration successful free rate travel to beryllium little than nan year-over-year alteration successful OIBDA.

And there’s benignant of a strategical mentation for that and a financial explanation. The strategical mentation is really that it reflects nan improvement of our streaming contented investment. We evidently ramped it up rather a spot complete nan past mates of years. Now it’s starting to stabilize arsenic we build scale, and you commencement to spot our multi-platform franchise attraction rolling successful arsenic good arsenic nan savings that we’re unlocking by integrating Showtime and Paramount+.

Now nan financial reply to that is really that it reflects a simplification successful contented moving capital, meaning that complete nan past mates of years, rate contented walk accrued rather a spot faster than contented disbursal because of nan quality of amortization. But arsenic we’re reaching much unchangeable levels of contented investment, that move flips.

So for nan adjacent mates of years, you will spot contented disbursal connected nan P&L will turn faster than rate contented spend. And successful fact, arsenic we move from 2023 to 2024, this is important, we expect to spot maturation successful free rate travel that is measurably larger than nan maturation successful OIBDA.

And past I deliberation nan past portion of your mobility related to nan dividend and what I’d opportunity location is that our superior allocation strategy is good aligned pinch our operating plan. Yes, rate travel will beryllium antagonistic successful 2023. That’s benignant of nan quality of immoderate of nan discourse we’re operating in, including nan truth that we’re going to beryllium astatine highest losses for D2C successful 2023, and location are immoderate advertisement headwinds. But some of those things are short-term successful nature.

We’re going to commencement to turn D2C net adjacent year, and we do expect nan advertisement marketplace to retrieve starting successful nan backmost half of 2023, which intends that we’re going to spot important betterment successful OIBDA and free rate travel successful 2024. And successful nan interim, we’ve sewage a very beardown equilibrium expanse that includes complete $3 cardinal of rate connected nan equilibrium sheet.

That’s anterior to incorporating immoderate early plus sales. We vanished past twelvemonth pinch nett leverage astir 4 times. We don’t person immoderate near-term indebtedness maturities, and we person a $3.5 cardinal revolver that remains undrawn. So we consciousness bully astir that scheme some from a maturation position and from a financial perspective.

Anthony DiClemente

Great. Thanks, Mike. Operator, we’ll return our adjacent question.


Thank you. The adjacent mobility goes to Ben Swinburne of Morgan Stanley. Ben, please spell ahead. Your statement is open.

Ben Swinburne

Thanks. Good morning. Maybe two. Bob, could you talk a small spot astir nan outlook connected movie pinch Paramount? You person a large slate for 2023. And obviously, you had a batch of occurrence past year. Can you conscionable talk a small spot astir nan movie strategy astatine Paramount and really you spot that feeding Paramount+ maturation complete time?

And then, Naveen, possibly conscionable to effort to decorativeness nan benignant of 2023 conversation. You guys gave america immoderate adjuvant guidance for Q1 OIBDA. Any thief for nan twelvemonth connected wide OIBDA versus 2022 conscionable truthful we tin deliberation astir nan correct free rate travel comparison arsenic well? Thank you, both.

Bob Bakish

Yes. Sure, Ben. So nan first portion of your question, obviously, 2022, highly successful twelvemonth for Paramount Pictures, six number ones astatine nan container agency successful nan U.S. connected an eight-picture slate, which gave america really a amended deed complaint surely than nan manufacture average. No question, our movie finance is paying existent dividends.

As you know, we some monetize it successful nan theatre and connected Paramount+. And truthful we were early to that strategy, and others are benignant of moving successful that direction. When you look astatine Paramount+, movies are apical performer connected nan service, highly efficient, peculiarly connected a costs per commencement basis. So we consciousness awesome astir that.

As we look guardant to 2023 and 2024, we’re very excited astir what’s going connected successful Paramount Pictures. You look astatine nan slate, it’s progressively franchise-oriented. We judge successful franchise, arsenic you know. Talk astir titles. Scream, which is coming this month. It’s New York located. A batch of buzz connected that.

We sewage our first Dungeons & Dragons movie. We’re excited astir that. Next Transformer movie. When we released a trailer, that blew up nan Internet. Next Mission Impossible movie, which is wholly retired of power and a thrill ride, astir apt beryllium nan biggest Mission Impossible yet. The adjacent Turtles movie. And nan adjacent PAW Patrol movie, which I don’t cognize if you bent retired pinch immoderate preschoolers, but they emotion PAW Patrol. And past there’s much to come. So we’re very, very excited astir what’s going connected astatine Paramount Pictures. And again, leveraging it some successful nan theatrical broadside and connected nan streaming broadside to awesome effect. Naveen, nan 2nd part?

Naveen Chopra

Yes. So Ben, pinch respect to 2023 OIBDA, we’re not providing immoderate benignant of circumstantial numerical guidance today, but I tin springiness you a fewer further notes to thief you exemplary nan year. If you deliberation first astir nan D2C segment, arsenic we’ve made clear, this is nan twelvemonth of highest losses.

So you should deliberation astir it arsenic really reflecting nan afloat twelvemonth effect of investments that we made successful 2022, astir of those related to contented and marketplace description . On nan TV Media broadside of nan business, we are looking to advertisement betterment successful nan backmost half of nan year. I deliberation TV Media will besides bespeak nan effect of a number of nan costs savings initiatives that we started talking astir connected our past telephone arsenic good arsenic immoderate of nan benefits that we’ll unlock from Showtime and Paramount+ successful nan backmost portion of nan year.

And past connected nan Filmed Entertainment segment, we do expect somewhat little OIBDA connected a year-over-year ground there, conscionable fixed nan timing of our movie slate, which is simply a small much back-end loaded successful 2023 comparative to 2022. And then, of course, we’re comping against 2022, which included Top Gun, which was evidently a very ample contributor.

Ben Swinburne


Anthony DiClemente

Thanks, Ben. Operator, we’ll return our next.


Thank you. Our adjacent mobility goes to Rich Greenfield of LightShed Partners. Rich, please spell ahead. Your statement is open.

Rich Greenfield

Hey, acknowledgment for taking nan question. I sewage a mates of benignant of large image questions for Bob and past a speedy financial one. So I’ve heard that location was reliable multi-billion dollar offers for Showtime. Curious benignant of really you thought astir nan worth accretion of collapsing it into Paramount+ versus conscionable trading it for cash?

Disney past – I deliberation Iger, if you listened to him connected my net telephone and surely connected CNBC, he’s backing beautiful acold distant from wide intermezo content. Hulu’s intelligibly for sale. Wondering, one, do you person liking successful buying Hulu? Could that beryllium an absorbing plus for Paramount? And related to that, really do you respond to benignant of nan – what I conjecture he called undifferentiated wide intermezo programming not being a awesome spot to be?

And past nan financial housekeeping is conscionable connected nan free rate flow, are you committing to affirmative free rate travel successful 2024 aliases conscionable an betterment successful losses successful 2024? I wasn’t judge really to return what you said. Thanks. I cognize that’s a lot.

Bob Bakish

Sure, Rich, a three-parter. So connected Showtime, look, we deliberation location is tremendous worth to unlock pinch nan integration of Showtime and Paramount+. Both Naveen and I talked astir that immoderate today. So comparative to that, if we were to divest nan asset, it would person to create much worth than our ain operating plan. And arsenic steward to shareholder value, we’ll ever listen. But frankly, that barroom is beautiful high. So beyond that, I don’t deliberation thing to say.

Moving to Mr. Iger and undifferentiated, et cetera, look, differentiation matters. And nan wide intermezo abstraction whitethorn not make consciousness for everyone, but wide intermezo intelligibly makes consciousness for america erstwhile you look astatine our plus creation and really nan nuances of our contented engine. And erstwhile we went to marketplace pinch Paramount+, well, really earlier we went to market, we thought a batch astir this mobility because we knew we needed to beryllium differentiated because we weren’t first to market.

For us, news, sports and magnitude of intermezo was a clear way to differentiated position and 1 that we knew aliases astatine slightest powerfully believed would resonate pinch consumers and entreaty to nan full household. And that’s crossed this state and really astir nan world. And erstwhile you look astatine Paramount+’s user traction, including having nan astir ads of immoderate SVOD work successful nan U.S. since motorboat and nan astir ads successful Q4 mixed pinch 81% gross growth, look, that positioning is intelligibly working.

You look nether nan covers astatine what’s driving it, it’s nan operation of Paramount films, CBS hits, Nickelodeon franchises, and our P+ originals, things for illustration 2023 and Tulsa King, Criminal Minds, Wolf Pack, Star Trek: Strange New Worlds, I could spell on, positive sports and news. So there’s nary mobility that our contented motor is delivering against our position.

And pinch respect to nan costs of wide entertainment, which you didn’t specifically inquire but surely was built into that speech that you’re referring to, look, our multi-platform strategy and franchise attraction guarantee we tin build a differentiated contented slate and simultaneously create a compelling contented ROI. So again, wide entertainment, it wholly useful for america successful wide and streaming, and possibly we’re different because of our plus creation and strategy, but we’re leaning into it.

Naveen Chopra

And Rich, pinch respect to your financial question, convey you for giving america a chance to explain that. Our scheme is to present affirmative rate travel successful 2024.

Anthony DiClemente

Thanks, Rich. Operator, adjacent mobility please.


Thank you. The adjacent mobility goes to Jessica Reif Ehrlich of Bank of America. Jessica, please spell ahead. Your statement is open.

Jessica Reif Ehrlich

Thank you. I conscionable wanted to possibly a explanation connected immoderate of nan things you said astir pricing. Can you springiness immoderate colour connected nan economics of nan business and really you would relationship for Delta successful your sub numbers? But much specifically connected nan pricing, for illustration really overmuch – what’s nan magnitude that you’re reasoning of raising prices and nan timing? And connected nan impairment charge, what’s included successful that $1.3 cardinal plus?

Bob Bakish

Yes. Sure, Jessica. I’ll return nan first portion of that. Look, we’re ace excited astir nan Delta business we did. It was a competitory process and evidently we won, it provides Sky members entree to Paramount+ successful nan aerial and for a constricted play connected nan ground. So you tin deliberation of it arsenic promotional successful nature. Importantly, nan subscriber numbers will not beryllium successful our sub count.

So they will only – what they do is they put successful their predominant flyer mile, and that gives them impermanent access. But it’s only if they really go a existent subscriber that it will commencement to spell to our sub count and thrust gross and each that. But we deliberation it’s an awesome promotional platform. And I cognize nan Delta folks are really excited astir it coming could – really showcases what they’ve done successful broadband and their planes successful nan air. And we deliberation it’s going to beryllium a bully positive for Paramount+.

Naveen Chopra

And I’ll jump successful connected nan questions related to really we’re reasoning astir pricing. We – there’s some, obviously, we person put a batch of thought into since nan motorboat of Paramount+. That includes conducting a assortment of conjoint analyses and besides really studying immoderate of nan humanities value increases that you’ve seen successful nan manufacture much broadly. What we learned from that was that Paramount+ remains an unthinkable worth proposition for consumers, peculiarly fixed nan upward trajectory that you’re seeing pinch pricing crossed nan industry. And of course, that worth proposition will get moreover stronger pinch nan summation of Showtime contented into nan premium tier of Paramount+.

We besides learned that nan headwind from value increases tends to autumn much connected caller subscriber acquisition and little truthful connected churn. And that’s thing that has surely guided our reasoning astir nan value increases. So conscionable arsenic a reminder, nan value connected nan premium tier Paramount+, which will now see Showtime, will spell up by $2, truthful from $9.99 to $11.99. We’ll person a $1 summation connected nan basal tier from $4.99 to $5.99.

And we deliberation that makes consciousness because effectively, what we’re doing is tying a bigger value summation connected nan premium tier to a important description of contented while keeping an easy accessible introduction constituent connected nan basal tier. And we’ll proceed to return advantage of promotional pricing, yearly plans and bundles arsenic a measurement of some maintaining nan chimney for caller customer acquisition while optimizing churn and increasing ARPU.

So we’re excited astir nan publication from pricing. And from a timing perspective, that will footwear successful erstwhile nan caller work launches successful early Q3. And past I deliberation nan past portion of nan mobility was connected impairment. The impairment charge, which will travel successful Q1, is really each astir content. And it’s driven by nan fact, arsenic I said, that erstwhile we harvester Showtime and Paramount+, we don’t request nan benignant of contented that you would request if they were operating connected an independent basis. So that will supply a use successful position of reduced amort connected a go-forward basis.

Anthony DiClemente

Thanks a lot, Jessica. Operator, adjacent mobility please.


Thank you. The adjacent mobility goes to Doug Mitchelson of Credit Suisse. Doug, please spell ahead. Your statement is open.

Doug Mitchelson

Thanks truthful much. Just a fewer cleanup questions. One, connected nan value increases, really does that usability pinch nan partnerships? I’m conscionable trying to fig retired benignant of what percent of subscribers I use that value summation to aliases really I deliberation astir nan magnitude of nan use to ARPU. The 2nd portion is connected that impairment charge, could you stock really that impacts 2023 EBITDA? Or really that benignant of feathers successful complete clip successful position of improving nan contented amortization? And I conjecture these are each for Naveen. Sorry, Bob.

I deliberation nan past benignant of large 1 is, tin you thief america understand erstwhile does nan rate contented walk and nan contented amortization equalize? So I understand it’s going to amended successful 2024 successful particular. But tin we look out, prime a number of 3 years and say, okay, we don’t person a moving superior pain related to contented rate costs versus amortization? Thank you very much.

Naveen Chopra

Thanks, Mike. And I opportunity that connected behalf of Bob, truthful fto him…

Bob Bakish


Naveen Chopra

Doug, excuse me, Doug. But acknowledgment for letting Bob disconnected easy. I’ll return those successful order. With respect to really nan value increases applied to partnerships, a mates of things. The value increases will return effect crossed some our nonstop channels and each of our third-party platforms. So that includes transmission partners for illustration Amazon, Roku, Apple, et cetera. With respect to nan bundles that we person pinch commercialized partners, nan timing of value increases successful those relationships will beryllium wished connected a case-by-case basis. And obviously, we’re not going to remark publically connected each of those deals.

Your mobility connected nan impairment complaint and its effect successful 2023, I deliberation nan measurement you should deliberation astir that is that successful general, contented connected our streaming services has an amortization play of astir 4 years, positive aliases minus, depends a small spot connected nan type of content. And truthful you’re going to get nan use complete that play of time. It’s going to beryllium a small greater successful 2023 and past commencement to alteration a spot because there’s much amort to rotation disconnected successful nan first twelvemonth than successful consequent years.

And past I deliberation your past mobility was astir erstwhile we commencement to spot benignant of neutralization of nan moving superior resistance connected – betwixt rate and OIBDA. I deliberation nan reply location is we’re going to move for nan adjacent mates of years into this mode wherever nan maturation complaint successful rate contented walk is going to beryllium overmuch little than nan maturation complaint that you’ll spot connected nan P&L. And past beyond that constituent successful time, you’ll commencement to spot them move overmuch much successful statement pinch each other.

Anthony DiClemente

Thanks, Doug. Operator, adjacent mobility please.


Thank you. The adjacent mobility goes to Phil Cusick of JPMorgan. Phil, please spell ahead. Your statement is open.

Phil Cusick

Hi, convey you for squeezing maine in. Bob, first, tin you grow connected your remark astir stabilization successful advertising? How should we deliberation astir indications for nan existent 4th and really you deliberation astir deeper successful nan twelvemonth comping versus nan 4th quarter? And past second, tin you grow connected nan publication from world from – for Pluto? Thanks very much.

Bob Bakish

Yes. Sure, Phil. So successful position of nan advertisement market, you look astatine Q1, which is astir apt nan astir timely we’re connected nan market. And arsenic we said, we judge our home nationalist advertisement income maturation will amended successful Q1 comparative to Q4. You look astatine what’s going connected successful nan categories, location are immoderate agleam spots for sure. Categories that are really moving astatine nan infinitesimal are nutrient and beverage, pharma, recreation and progressively auto. So we for illustration that. The spot really is overmuch much truthful connected nan nonstop broadside of nan business, and that’s a spot wherever Paramount has a existent advantage. In fact, we’ve precocious reorganized our advertisement income unit astir circumstantial teams aligned pinch holding companies to benignant of streamline entree for them, make it much turnkey. And that’s been very good received.

So nonstop broadside of nan business is simply a spot wherever we’re advantaged. The indirect, really nan programmatic side, is still soft. And we’re looking for that to move arsenic nan marketplace improves. I’d besides opportunity successful Q1 related to it, nan section – underlying section advertisement business is improving arsenic well. It’s not conscionable a nationalist thing, though erstwhile you look astatine local, obviously, you don’t person nan aforesaid governmental successful Q1 that you had successful Q4. So that’s a spot of a headwind. But net-net, we – comparative to Q4, we for illustration what we’re seeing benignant of correct astatine nan infinitesimal successful Q1. And that does make america optimistic connected this 2nd half recovery.

And by nan way, nan 2nd half recovery, erstwhile we said it’s each astir nan maturation rate, we judge location will beryllium betterment successful maturation complaint arsenic nan twelvemonth goes on. And it is worthy noting that nan comps easiness a spot moving forward. And truthful mathematically, that helps. But it’s really nan underlying reside that we deliberation has stabilized, and we deliberation that – we cognize that’s nan first measurement earlier you get nan existent improvement, which again look into nan backmost half of nan twelvemonth four.

Naveen Chopra

There was a mobility astir Pluto international.

Bob Bakish

You want?

Naveen Chopra

Yes, I tin return that if you like. Pluto successful nan – excuse me, nan world markets is surely astatine an earlier shape of improvement and monetization than wherever we are successful nan United States. But it’s grown astatine a bully rate. So, we’re enthusiastic astir that. We saw a decent chunk of nan MAU maturation successful Q4 was international, including successful Canada, wherever we launched an breathtaking business pinch Corus. And from a monetization perspective, arsenic I said, it’s still comparatively mini standard internationally, but very compelling maturation rate. So, we’re looking guardant to it being a bigger contributor complete time.

Anthony DiClemente

Okay. Thanks a lot. So operator, we person clip for 1 past question. Thanks.


Thank you. The last mobility goes to Kutgun Maral of RBC Capital Markets. Kutgun, please spell up your statement is open.

Kutgun Maral

Great. Good greeting and acknowledgment for taking nan question. I wanted to follow-up connected nan world DTC outlook much broadly. Paramount has had a differentiated rollout strategy overseas whether we’ve gone astatine it alone, leaned connected third-party distributors aliases person collaborated pinch nan likes of Comcast aliases Reliance successful a reasonably unsocial way. Some of your peers are exiting definite markets, and others person talked astir plans to return a harder look astatine wherever they run arsenic they reset nan economics. How do you spot nan opportunity overseas evolving? And are location immoderate changes Paramount is looking to make successful nan strategy to champion capitalize connected nan early of world streaming? Thank you.

Bob Bakish

Yes, sure. Kutgun, fto maine return that. And suffice to say, I was schooled successful international, spent amended – well, really spent a decade moving our businesses. And truthful that’s surely informed what we’re doing here. Start pinch nan truth that streaming is decidedly a world opportunity, and frankincense nan world markets are an important portion of nan equation. And conscionable to level set, arsenic we travel retired of 2022, we’re evidently progressive successful each Latin America, Western Europe arsenic good arsenic Canada, South Korea and Australia. And past we sewage our Sky JV, which is successful Eastern Europe and nan Nordics and nan Netherlands, but not consolidating our numbers.

So we’re beautiful good penetrated, and we’re going to really attraction 2023 connected deepening our information successful those markets. But to your point, I judge successful a world strategy, but section marketplace execution. And you person to look astatine nan nuances of nan marketplace arsenic you spell forward. I besides judge successful nan powerfulness of partnership. That led america early connected and really first to this difficult bundle conception wherever we usage existing relationships pinch what you could deliberation of arsenic MVPDs [ph] to benignant of turbocharge our marketplace entry. We do that successful nan UK. We do that successful Germany. We did that successful Italy. We’ve done that a spot successful Latin America. And that’s each astir getting a ample chunk of subscribers retired of nan gross astatine zero acquisition cost.

And past now, arsenic Naveen said, it really besides was intended and successful fact, has catalyzed request for transmission stores and nan much nonstop business, D2C O&O, which we really for illustration what we’re seeing successful nan inclination lines there. And that will surely proceed to play retired successful 2023. So, we are very overmuch looking astatine this market-by-market. And portion of nan highest operating losses, by nan way, successful 2023 is driven by nan truth that we launched each of Western Europe successful nan backmost half of 2022. So that had immoderate spillover effect to our financials. But arsenic we get past that, that helps arsenic well.

So really excited astir nan world marketplace opportunity. We are going astatine it differently. And yes, you’re right, I’ve talked to immoderate folks who are reasoning astir scaling backmost their presence, but they fundamentally launched a D2C O&O successful each these independent markets astir nan world themselves and arguably are subscale, too. So, I’m not amazed they’re unwinding it, but we didn’t spell into it for illustration that. We were very thoughtful successful really we went into it, again, leveraging existing relationships and assets to some accelerate nan maturation of nan business and really guarantee it’s an charismatic longer-term business.

And pinch that, I conscionable want to wrap nan telephone and time off you pinch a fewer cardinal points to support successful mind. We judge successful our differentiated strategy, our unsocial portfolio of assets and our expertise to make celebrated contented efficiently. And I deliberation you saw that successful 2022, and you will spot it successful 2023. We are focused connected nan move towards streaming profitability. Our scheme ever contemplated that, and we are very overmuch executing against that. We look astatine our attack arsenic already creating worth for shareholders fixed nan beardown Paramount+ gross and subscriber growth. Yes, you’ve sewage to break it retired separately and look astatine it arsenic immoderate of nan parts, but there’s nary mobility we’ve already created a very worldly asset, and it’s sewage a agelong charismatic runway up of it.

And arsenic we proceed to execute our 2023 plan, it really sets nan stage, arsenic Naveen said, for a return to important net maturation and a return to affirmative free rate flow, acknowledgment Rich, successful 2024. So convey you, everyone for your support, and beryllium well.


Thank you. This now concludes today’s call. Thank you truthful overmuch for joining. You whitethorn now disconnect your lines.

Editor: Naga

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