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Paramount Q1 ‘Licensing and Other’ Revenue Declines

Paramount Global May 3 reported first-quarter revenue (ended March 31) of $491 million in its “licensing and other” business segment, which was down 42% from revenue of $853 million in the prior-year period.

The business unit, which includes Paramount Home Entertainment, said the revenue decline was primarily driven by the benefit in the prior-year period from the licensing of erstwhile theatrical release Coming 2 America and Tom Clancy’s Without Remorse to Amazon Prime Video. The Coming to America sequel’s exclusive availability on Prime Video was due to ongoing closures of U.S. movie theaters due to the pandemic.

Theatrical revenue increased $130 million in the quarter and included revenue from the first quarter releases of Scream, Jackass Forever and The Lost City, while the prior-year period revenue of $1 million was impacted by the closure or reduced capacity of movie theaters in response to COVID-19.

Paramount disclosed that another “Jackass” series is in the works for Paramount+. The pending Jackass 4.5 movie featuring footage not used in the Jackass Forever movie, is slated to bow on Netflix May 20.

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When combined with advertising, the filmed entertainment segment saw a pre-tax loss of $37 million on revenue of $624 million. That compared with a pre-tax profit of $179 million on revenue of $860 million in the prior-year period.

Paramount said the decline was due to increased marketing expense associated with quarterly and future theatrical releases.

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