Paramount Global (PARA) 2024 Q1 法說會逐字稿

Good afternoon. My name is Harry, and I'll be your conference operator today. I would like to welcome everyone to Paramount Global's Q1 2024 Earnings Conference Call.

午安.我叫哈利，今天我將擔任你們的會議操作員。我謹歡迎大家參加派拉蒙全球 2024 年第一季財報電話會議。

At this time, I would now like to turn the call over to Jaime Morris, Paramount Global's EVP, Investor Relations. You may now begin your conference call.

現在，我想將電話轉給派拉蒙全球投資者關係執行副總裁 Jaime Morris。您現在可以開始電話會議。

Good afternoon, everyone. Thank you for taking the time to join us for our first quarter 2024 earnings call. Joining me for today's discussion is Naveen Chopra, our CFO; and to make some brief introductory remarks on behalf of our new Office of the CEO, we have also have George Cheeks, Chris McCarthy and Brian Robbins.

大家下午好。感謝您抽空參加我們的 2024 年第一季財報電話會議。與我一起參加今天討論的是我們的財務長 Naveen Chopra；喬治·奇克斯 (George Cheeks)、克里斯·麥卡錫 (Chris McCarthy) 和布萊恩·羅賓斯 (Brian Robbins) 代表我們新任首席執行官辦公室做了一些簡短的介紹性發言。

Before we start, please note that in addition to our earnings release, we have trending schedules containing supplemental information available on our website. Also, I want to remind you that certain statements made on this call are forward-looking statements that involve risks and uncertainties. These risks and uncertainties are discussed in more detail on our filings with the SEC. Some of today's financial remarks will focus on adjusted results.

在開始之前，請注意，除了我們的收益發布之外，我們的網站上還提供包含補充資訊的趨勢表。另外，我想提醒您，本次電話會議中所做的某些陳述屬於前瞻性陳述，涉及風險和不確定性。我們向 SEC 提交的文件中更詳細地討論了這些風險和不確定性。今天的一些財務評論將重點放在調整後的業績上。

Reconciliations of these non-GAAP financial measures can be found in our earnings release or in our trending schedules, which contains supplemental information. And in each case, these can be found in the Investor Relations section of our website.

這些非公認會計原則財務指標的調節可以在我們的收益發布或我們的趨勢表中找到，其中包含補充資訊。在每種情況下，這些都可以在我們網站的投資者關係部分找到。

I also want to note that we will not be taking questions following our prepared remarks. The main purpose of today's call is to provide you with the information regarding our first quarter 2024 performance.

我還想指出，我們不會在準備好的發言後回答問題。今天電話會議的主要目的是向您提供有關我們 2024 年第一季業績的資訊。

Now I will turn the call over to George.

現在我將把電話轉給喬治。

Thanks, Jaime. First, we want to thank Bob for his many years of leadership and steadfast support for all Paramount Global businesses, brands and people. Now Chris, Brian and I want to speak briefly on our partnership, our excitement about this collaboration and what we're addressing is our first order of business.

謝謝，海梅。首先，我們要感謝鮑伯多年來對派拉蒙全球所有業務、品牌和人員的領導和堅定支持。現在，克里斯、布萊恩和我想簡要地談談我們的合作關係、我們對這項合作的興奮以及我們正在解決的首要任務。

Let me start by saying that Paramount Global has the greatest content in the world. That is the most important point. We've got incredible assets at this company, both in what we produce and the amazing people who make it all possible. Everything will build from that.

首先我要說的是派拉蒙全球擁有全世界最棒的內容。這是最重要的一點。我們公司擁有令人難以置信的資產，無論是我們生產的產品還是使這一切成為可能的優秀人才。一切都將以此為基礎。

And now over to Chris.

現在輪到克里斯。

Thank you, George. And just as important is the fact that we've all worked together collaboratively for years and have known each other for decades. It's a true partnership. We have a deep respect for one another, and we're going to lead and manage this company together.

謝謝你，喬治。同樣重要的是，我們已經合作多年，並且彼此認識數十年。這是真正的夥伴關係。我們彼此深深尊重，我們將共同領導和管理這家公司。

On that note, we're finalizing a long-term strategic plan to best position the stored company to reach new and greater heights in our rapidly changing world. The plan is focused on 3 pillars: first, make the most of our hit content; second, strengthen our balance sheet; and third, optimize our streaming strategy.

在這一點上，我們正​​在敲定一項長期戰略計劃，以幫助儲存的公司在快速變化的世界中達到新的更高的高度。該計劃重點關註三大支柱：第一，充分利用我們的熱門內容；其次，加強我們的資產負債表；第三，優化串流策略。

And now here's Brian.

現在是布萊恩。

Thank you, Chris. George, Chris and I have been collaborating with each other for years. transforming our businesses and most importantly, making hit films and television, which is the core of Paramount Global. Each of us has deep industry knowledge, relationships and experience as business leaders and creative executives. We will bring all of that to bear as we chart a course forward for our company. We look forward to coming back to you in short order to share our plan and discussing it all in detail at that time.

謝謝你，克里斯。喬治、克里斯和我多年來一直合作。改變我們的業務，最重要的是製作熱門電影和電視，這是派拉蒙全球的核心。身為商業領袖和創意主管，我們每個人都擁有深厚的產業知識、關係和經驗。當我們為公司製定前進方向時，我們將把所有這些都付諸實踐。我們期待盡快與您聯繫，分享我們的計劃並屆時將詳細討論。

Thank you, and now here's Naveen.

謝謝，現在是納文。

Thank you, Brian, and good afternoon, everyone. In Q1, we generated significant growth in earnings and free cash flow and improved our balance sheet.

謝謝你，布萊恩，大家下午好。第一季度，我們的收益和自由現金流顯著成長，並改善了我們的資產負債表。

Paramount delivered total company revenue growth of 6% to $7.7 billion. Adjusted OIBDA grew 80% to $987 million, reflecting improvements across all 3 of our business segments. Our direct-to-consumer business delivered healthy top line growth and improved operating leverage. TV Media operating margins expanded year-over-year and Filmed Entertainment adjusted OIBDA improved by nearly $100 million versus the year ago period.

派拉蒙公司總營收成長 6%，達到 77 億美元。調整後的 OIBDA 成長了 80%，達到 9.87 億美元，反映出我們所有 3 個業務部門的改善。我們的直接面向消費者業務實現了健康的營收成長並提高了營運槓桿。電視媒體營業利潤較去年同期擴大，電影娛樂調整後的 OIBDA 較去年同期增加近 1 億美元。

As always, you'll find a comprehensive review of our financial results in our press release, but I'd like to focus on a few areas of note.

像往常一樣，您會在我們的新聞稿中找到對我們財務表現的全面回顧，但我想專注於幾個值得注意的領域。

Starting with advertising, which was a highlight in the quarter. Total company advertising grew 17%, benefiting from Super Bowl LVIII, which contributed 22 percentage points to the growth rate. The game broke records across CBS, Paramount+ and Nickelodeon, a great example of the power of our multi-platform offering.

從廣告開始，這是本季的一大亮點。由於第 8 屆超級碗，公司廣告總量增長了 17%，為增長率貢獻了 22 個百分點。該遊戲打破了 CBS、Paramount+ 和 Nickelodeon 的記錄，充分體現了我們多平台產品的強大功能。

TV Media advertising grew 14% in the quarter, including a 23 percentage point contribution from the Super Bowl. Sports continue to over deliver with the NFL playoffs and NCAA college basketball contributing to growth in the quarter.

本季電視媒體廣告成長了 14%，其中超級盃廣告貢獻了 23​​ 個百分點。體育賽事繼續超額交付，NFL 季後賽和 NCAA 大學籃球為本季度的成長做出了貢獻。

Direct-to-consumer advertising grew 31%, driven by growth from Pluto TV and Paramount+, including the benefit of the Super Bowl. Beyond the Super Bowl impact on engagement, revenue growth reflects a combination of increased sell-through and higher CPMs.

在 Pluto TV 和 Paramount+ 的成長（包括超級盃的好處）的推動下，直接面向消費者的廣告成長了 31%。除了超級盃對參與度的影響之外，收入成長也反映了銷售增加和每千次曝光費用的提高。

Next, total company affiliate and subscription revenue, which grew 6% in Q1. In TV Media, affiliate revenue declined 3% year-over-year, reflecting overall Pay-TV ecosystem declines, partially offset by pricing. D2C subscription revenue, on the other hand, grew 22% in the quarter, anchored by greater than 50% growth in Paramount+ subscription revenue. Paramount+ added 3.7 million subscribers in the quarter, reaching a total of $71.2 million. Subscriber growth benefited from the NFL and the Super Bowl.

接下來是公司聯營和訂閱總收入，第一季成長了 6%。在電視媒體領域，聯盟行銷收入較去年同期下降 3%，反映出付費電視生態系統整體下滑，但部分被定價所抵銷。另一方面，D2C 訂閱收入在本季度增長了 22%，這得益於派拉蒙+訂閱收入超過 50% 的增長。 Paramount+ 本季新增訂戶 370 萬，總營收達 7,120 萬美元。訂閱者的成長得益於 NFL 和超級盃比賽。

And finally, on the D2C segment, revenue grew 24% year-over-year in Q1, led by 51% growth in Paramount+ revenue and 26% global ARPU expansion. ARPU growth reflects a full quarter of our domestic price increase and the addition of international subscribers in higher ARPU markets. Domestic ARPU was negatively impacted by lower-than-expected engagement due to the lagging effect of last year's strikes, which constrained the availability of new programming.

最後，在 D2C 領域，第一季營收年增 24%，其中派拉蒙+營收成長 51%，全球 ARPU 成長 26%。 ARPU 成長反映了我們整個季度的國內價格上漲以及 ARPU 較高市場中國際用戶的增加。由於去年罷工的滯後效應，限制了新節目的播放，因此國內 ARPU 受到參與度低於預期的負面影響。

D2C adjusted OIBDA improved 44% year-over-year, led by improvement in Paramount+ domestic profitability. Healthy revenue growth and a disciplined focus on cost drove improved leverage in content, marketing and other overhead costs, which all decreased as a percentage of revenue relative to the prior year.

在派拉蒙+國內獲利能力改善的帶動下，D2C 調整後的 OIBDA 較去年同期成長 44%。健康的收入成長和對成本的嚴格關注推動了內容、行銷和其他間接費用的槓桿率提高，這些成本佔收入的百分比均較上一年有所下降。

I'd also like to share some important notes regarding our balance sheet. In Q1, we delivered $209 million of free cash flow, an improvement of over $750 million versus a year ago. We also remain focused on reducing leverage, which improved 3/4 of a turn to 4.3x, benefiting from growth in adjusted OIBDA.

我還想分享一些關於我們資產負債表的重要說明。第一季度，我們實現了 2.09 億美元的自由現金流，比一年前增加了 7.5 億美元以上。我們也持續致力於降低槓桿率，受益於調整後的 OIBDA 成長，槓桿率提高了 3/4 至 4.3 倍。

Additionally, last month, we entered into an agreement with Reliance Industries to sell our equity interest in Viacom18 for approximately $500 million based on current exchange rates. The after-tax proceeds will further benefit leverage when the transaction closes at the end of 2024 or early in 2025, subject to regulatory approval.

此外，上個月，我們與 Reliance Industries 達成協議，根據當前匯率以約 5 億美元的價格出售我們在 Viacom18 的股權。當交易於 2024 年底或 2025 年初完成時，稅後收益將進一步有利於槓桿作用（須經監管部門批准）。

Selling our stake in Viacom18 provided an opportunity to exit our ownership position with an attractive financial return on our investment while preserving our ability to monetize our content in India through ongoing licensing arrangements.

出售我們在 Viacom18 的股份為我們提供了退出所有權地位的機會，我們的投資獲得了有吸引力的財務回報，同時保留了我們透過持續的許可安排在印度透過內容貨幣化的能力。

And lastly, on April 1, we paid the last dividend on our mandatory convertible preferred stock, which converted to 11.5 million Class B common shares on the same day. Going forward, our cash dividend payment will be reduced by about $55 million on an annual basis as a result of the conversion.

最後，4 月 1 日，我們支付了強制可轉換優先股的最後一次股息，該優先股於同一天轉換為 1,150 萬股 B 類普通股。展望未來，我們的現金股利支付將因轉換而每年減少約 5,500 萬美元。

In closing, we are proud of our first quarter results. Although the operating environment continues to be dynamic, we remain focused on execution.

最後，我們對第一季的業績感到自豪。儘管營運環境仍然充滿活力，但我們仍然專注於執行。

And on a final note, I'd like to take a moment to thank Bob for his leadership of the company through a period of immense change for us and the industry. Not only did Bob help navigate a number of challenges, but I'm proud of all we've accomplished and it's been my privilege working together with him.

最後，我想花點時間感謝鮑伯在我們和整個產業發生巨大變革的時期對公司的領導。鮑伯不僅幫助應對了許多挑戰，而且我為我們所取得的成就感到自豪，與他一起工作是我的榮幸。

I'm also looking forward to working closely with George, Brian and Chris who will be stepping in to lead the office of the CEO. They are long-standing seasoned executives with deep expertise across their businesses and are well positioned to guide the next chapter of Paramount.

我還期待與喬治、布萊恩和克里斯密切合作，他們將接任執行長辦公室的領導職務。他們都是經驗豐富的主管，在各自的業務領域擁有深厚的專業知識，並且有能力引領派拉蒙的下一個篇章。

With that, we'll conclude our first quarter earnings call. Thank you for joining us.

至此，我們將結束第一季的財報電話會議。感謝您加入我們。