Following the collapse of Paramount stock (NASDAQ:PARA) as ViacomCBS, global media entertainment company Paramount Global has undergone an image makeover and rebranding.
The Redstone family crisis and the $20 billion Archegos Capital Management blowup have emerged as the corporation’s most lucrative sum-of-all-parts media juggernaut, which the market may largely underestimate.
Paramount stock (NASDAQ:PARA) is worth less than a fifth of what it was worth a little over a year ago. Paramount Global is a multi-billion-dollar entertainment conglomerate with brands such as Paramount, Pluto, Showtime, CBS, CBS Sports, Nickelodeon, MTV, Comedy Central, BET, and the Smithsonian Channel.
CBS is the country’s leading broadcast network, with a 20% increase in market share over the previous year. Warren Buffett boosted his share count from 68.95 million to 78.42 million on August 15 in the Berkshire Hathaway Inc. (NYSE:BRK.A) 13F filing for Q2 2022. Shares have subsequently decreased in value, and they currently trade at eight times projected earnings, with a 5.15% annual dividend yield.
Top Gun 2 is a knockout.
Paramount Studios released five consecutive No. 1 box-office pictures. It had the year’s best film, “Top Gun 2,” which grossed $1.45 billion worldwide on a $170 million budget. The film has broken the $714 million box office record in the United States, making it the 22nd highest-grossing film of all time in terms of unadjusted worldwide profits. The release of the unexpected smash was well-timed by management.
Paramount Stock: Empire of Streaming
Rivals to its streaming business include Netflix (NASDAQ:NFLX), The Walt Disney Company (NYSE:DIS), Amazon.com Inc. Prime Video (NASDAQ:AMZN), and Warner Brothers Discovery Inc. (NYSE:WBD). The Paramount+ streaming service, which has over 43 million paying users, is one of its streaming assets. Pluto’s ad-supported streaming network has over 70 million monthly active users (MAUs), and its heritage platform, Showtime OTT, still generates subscription revenue from cable TV as well as its streaming platform.
Digital is propelling growth.
On August 4, 2022, Paramount reported its fiscal Q2 earnings for the quarter ending June 30, 2022. The firm announced earnings per share (EPS) of $0.64, $0.02 higher than the $0.62 average analyst expectation. Revenues increased 18% year-on-year (YoY) to $7.78 billion, exceeding analyst expectations of $7.55 billion. To reach over 43 million users, Amount+ attracted 4.9 million new customers and deleted 1.2 million Russian subscribers. Advertising revenues in the DTC category increased by 25%, owing to more impressions on both Paramount+ and Pluto TV. Advertising revenues declined (-6%) to $2.17 billion due to reduced linear impressions and foreign exchange.
Featured Image – Megapixl © Twindesign
Author Okoro Chinedu 
