Q1 2025 Paramount Global Earnings Call
Certainties are discussed in more detail in our filings with the SEC.
Some of today's financial remarks will focus on adjusted results Reconciliations of these non-GAAP financial measures can be found in our earnings release or in our trending schedules, which contain supplemental information and in each case can be found in the investor Relations section of our website.
Chris: Now I will turn the call over to Chris.
Chris: Thanks, Jamie and good afternoon, everyone. Thank.
Chris: Thank you for joining us on our Q1 2025 earnings call.
Chris Mccarthy: I'm, Chris Mccarthy and I'm joined here by my fellow co Ceos, George Cheeks, and Brian Robbins.
Chris Mccarthy: Our start by saying we are very pleased with our performance in the quarter.
Chris Mccarthy: Our focused execution with high performing content drove strong results across the company.
Chris Mccarthy: Total company revenue grew 2% year over year, excluding the Super Bowl.
Chris Mccarthy: DTC OIBDA improved nearly $180 million year over year.
Chris Mccarthy: And we generated a $123 million of free cash flow.
Chris Mccarthy: We're off to a good start for 2025 and important to note we have not seen a meaningful impact due to the dynamic macro environment.
Chris Mccarthy: That said looking forward given the uncertainty we are prioritizing key investments, while taking incremental steps to streamline non content expenses.
Chris Mccarthy: Now, let's get into some of the highlights of Q1.
Chris Mccarthy: Starting with DTC, where we continue to focus on driving profitable growth.
Chris Mccarthy: Paramount plus ended the quarter with 79 million global subscribers up 11% year over year, including 1.5 million new subscribers in the quarter.
Chris Mccarthy: Global watch time per user increased up 17% year over year.
Chris Mccarthy: And churn improved 130 basis points year over year.
Chris Mccarthy: Taken together Paramount plus revenue increased 16% year over year.
Chris Mccarthy: Now this success was driven by our differentiated content strategy of fewer bigger breakthrough original series, where we continue to see great momentum.
In the U S parent plus again had the second most top 10 asphalt originals for the quarter.
Chris Mccarthy: That includes land men in 1923, which were our number one and number two starts an engagement driver respectively.
Chris Mccarthy: Looking across both Q4, and Q1 combined Paramount plus had 25% of the top 10 as slot originals.
Chris Mccarthy: Second only to the market leader and two five times greater than the next closest competitor.
Chris Mccarthy: On the premium tier in the U S. Dexter original sin was the most streamed Showtime series ever.
Chris Mccarthy: And that was followed by yellow jackets, which was the second most stream Showtime series ever.
Chris Mccarthy: Now turning to international all of these series are delivering strong results combined with South Park in Yellowstone, where we have these series exclusively.
Chris Mccarthy: South Park continues to be a top starts driver and a top engagement driver.
Chris Mccarthy: And starting this July the series will be coming to Paramount plus in the U S.
Chris Mccarthy: Now turning to Yellowstone The series remains the number one star driver and the number one engagement driver for us internationally.
Chris Mccarthy: And the momentum will continue as we expand the franchise with three new series.
Chris Mccarthy: Starting with the Dutton ranch, which will premiere globally in Q4.
Chris Mccarthy: That fall by the franchise's first procedural the marshals premiering on CBS and next day on Paramount plus globally, starting in Q1 of 2026.
Chris Mccarthy: And later next year the anthology series will continue with the next chapter 1944.
Chris Mccarthy: Looking ahead, we have a great slate of returning hits and big New originals.
Chris Mccarthy: Our new series mob land premiered at the end of Q1, becoming Paramount Pluses biggest global series launch ever.
Chris Mccarthy: And today criminal minds evolution returned.
Chris Mccarthy: Next week Showtime series, the shy premieres on the premium tier in the U S.
Chris Mccarthy: Now the second half of the year, we'll see more originals to maximize the impact of increased viewership.
Chris Mccarthy: Starting in July with South Park.
Chris Mccarthy: Followed by Dextra Resurrection, Showtime's biggest franchise returns with Star Microsemi Hall.
Chris Mccarthy: And in August six the first ever Ncis streaming extension with Tony and Veeva.
Speaker Change: Followed by Taylor Sheraton's powerful slate of original starting with Tulsa King in September than mere Kingstown on October <unk>.
Speaker Change: Last year's Smash hit Lam and returns in November plus the all new Yellowstone franchise extensions the Denton ranch.
Speaker Change: Now turning to Pluto TV the service delivered its highest consumption ever with global viewing time up 26% year over year.
Speaker Change: Now monetization has been softer than expected due to the influx of supply.
Speaker Change: We anticipate supply demand dynamics will stabilize over time and the continued increases in engagement on Paramount plus and Pluto will lead to improved monetization over time.
Speaker Change: Turning to D to C profitability, we've made great progress driven by subscriber growth our pool expansion and churn reduction combined with a disciplined approach to managing investment.
Speaker Change: And as a result, we continue to expect Paramount plus domestic profitability for 2025.
George: And now I'll turn it over to George.
George: Thanks, Chris.
George: For TV media, we continue to leverage our content investments in sports news and entertainment across linear and streaming with a focus on increasing cost efficiencies.
George: On the revenue side since early last year, we've renewed key affiliate deals that secure revenue and support streaming growth. This approach has contributed to the combination of affiliate in DTC subscription revenue returning to growth on a total company basis in Q1.
George: And advertising, we're leveraging our content portfolio with live sports being more valuable than ever.
George: In Q1, TV media advertising, excluding the Super Bowl was flat year over year powered by the NFL playoffs and March madness.
George: We recently kicked off our upfront dinners, where once again highlighting the strength of our mass appeal programming paired with Paramount's unique set of broadcast cable theatrical and streaming platforms across free and pay.
George: Clients consistently remind us that in challenging markets. There are few partners that provide the reach brand safety and impact of the Paramount portfolio.
George: CBS continues to deliver audiences at scale across sports and entertainment.
George: The NC double a championship game averaged 18 million viewers cabin the most watched pharma four weekends since 2017.
George: The Masters Sunday broadcast scored nearly 13 million viewers the largest final round of golf on any network in seven years.
George: And CBS will win a record setting 17th consecutive season as the most watched broadcast network with eight of the top 10 shows.
George: Cbs's network audience grew 3% in the quarter compared to last year with the Super Bowl and was up 12% without the sports comp.
George: At the same time streaming of CBS primetime shows on Paramount plus increased by 35%.
George: Another example of multiplatform strength. According.
George: According to Nielsen competitive data for all broadcast and streaming shows since October CBS has six of the top 20 slots second only to Netflix with tracker and Matlock ranking number four and number five respectively.
George: This pipeline is poised to continue.
George: Yesterday, we announced Cbs's prime time schedule for the $25 26 season.
The new shows will include franchise expansions for F. B, I fire country, and Blue Bloods, and as Chris pointed out CBS will premiere the first broadcast procedural drama from the Yellowstone Universe.
George: And as always we remain laser focused on efficiency with all our content investments monetizing current and library programming across our platforms and through licensing.
George: Ian.
Ian: Thanks George.
Speaker Change: In filmed entertainment, we are continuing our focus on delivering our slate with widespread audience appeal and one that balances investment across titles and drives downstream revenue.
Speaker Change: The performance of the segment in Q1 was strong thanks to the major theatrical success of Sonic the Hedgehog three delivering box office sales of nearly $500 million, our franchise best which continued to excel in multiple home entertainment and streaming.
Speaker Change: So I'll make three was a top acquisition driver on Paramount plus following its mid February release and ranked as a top five movie on the service not only did our growing fan base come to the service for Sonic three but we also saw a nice lift for Sonic too and the knuckle series on Paramount plus.
Speaker Change: Another huge win for US was the streaming performance of Gladiator, two which became the number one movie in Paramount plus history.
Speaker Change: And speaking of powerhouse franchises mission impossible. The final reckoning promises to be a global event with its premier on may 23rd.
Mission continues to be instrumental in lifting the value of Paramount IP permeating almost every line of business across the organization since the film franchises inception, nearly 30 years ago.
Speaker Change: Holistically, we've built our slate this year to balance the scope and scale of a film like mission impossible with other titles that spans genres and budget levels, which better positions. The studio for profitability. This includes Edgar rights the running man a reboot of the comedy the naked gun starring Liam.
Speaker Change: And our family animation titles Smurfs, and the Spongebob movie search for square parents.
Speaker Change: With the goal of driving profitability, we successfully reduced average production cost on Paramount Pictures films by 35% over the last 24 months.
Speaker Change: All of this momentum across every aspect of our business is underpinned by our world class entertainment offerings across all of our verticals.
Speaker Change: We have much to be excited about as we continue to advance the business every day. Our teams remain focused on execution delivering hit series blockbuster films and live sports to audiences around the world and we're seeing that pay off.
Speaker Change: We also remain on track to close our pending transaction with Sky dance in the first half of this year.
Speaker Change: Now, let me turn it over to intervene to provide more details on the financials Levine.
Levine: Thank you Brian good afternoon, everyone.
Levine: In Q1, Paramount generated total company revenue of $7 2 billion and adjusted OIBDA of $688 million.
Levine: Adjusted OIBDA reflects year over year improvements in D C and filmed entertainment.
Levine: While results at TV media were heavily impacted by the comparison to last year's Super Bowl.
Levine: Free cash flow was $123 million, including $108 million in payments for restructuring and other initiatives.
Levine: Now, let's turn to our operating segment results, starting with direct to consumer.
Levine: In Q1, DTC continued to deliver healthy top line growth up 9% year over year to 2 billion.
Levine: Subscription revenue grew 16% driven by Paramount plus but was somewhat offset by a 9% decline in DTC advertising revenue, which includes an 800 basis point headwind from the comparison to last year's Super Bowl.
Levine: Excluding this comparison DTC advertising was down 1% largely due to increased supply in digital video.
Levine: This disproportionately affected Pluto, TV, which has the greatest exposure to the indirect marketplace.
Levine: Despite the advertising headwinds DTC OIBDA improved by $177 million to a loss of $109 million through a combination of healthy subscription revenue growth.
Levine: And continued expense management.
Levine: Turning to television media Q1 revenue and OIBDA trends reflect a comparison to cbs's broadcast of the Super Bowl last year.
Levine: TV media advertising revenue, excluding the Super Bowl was flat year over year.
Levine: And we saw improvement compared to the underlying trends in Q4.
Levine: Linear advertising in the quarter benefited from continued strength in sports, including strong demand for the NFL playoffs, and the N C double a men's basketball tournament.
Levine: Affiliate revenue declined eight 6% in the quarter, principally as a result of subscriber declines as well as the impact of recent renewals.
Levine: TV media OIBDA was $922 million in the quarter.
Levine: Expenses declined 4% year over year, primarily driven by the comparison to the Super Bowl.
Levine: We remain highly focused on delivering incremental cost efficiencies and maximizing earnings in our TV media business.
Levine: In filmed entertainment, we generated revenue of $627 million up 4% year over year, and OIBDA of $20 million, which compares to a loss of $3 million in the year ago quarter.
Levine: Our Q1 results primarily benefited from the success of Sonic the Hedgehog, III, which was released late in Q4.
Levine: Now let me provide some color on Q2.
Levine: Starting with linear advertising, where sports demand continues to be robust, although consistent with prior years Q2 results will reflect a lower volume of sports versus Q1.
Levine: In digital advertising, we expect trends in Q2 to look similar to the underlying trends in Q1.
Levine: At Paramount plus we continue to expect healthy revenue growth driven by an acceleration in <unk> consistent with our plan to achieve domestic P plus profitability this year.
Levine: 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.
Levine: Q2 subscribers will decline given the combination of content seasonality and the termination of an international hard bundled partnerships.
Levine: In film, we expect strong revenue contribution from the release of mission impossible the final recognize.
Levine: However, given the timing of marketing spend for the film we anticipate that this segment will generate an OIBDA loss for the quarter.
Levine: In terms of free cash flow, we expect Q2 to look similar to last year, including cash restructuring payments of approximately $100 million.
Levine: Looking further ahead, our priorities for the full year have not changed.
Levine: We continue to expect to deliver Paramount plus domestic profitability for 2025.
Levine: We're 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.
Levine: In the meantime, we continue to proactively manage spend while prioritizing investment in key growth initiatives.
Levine: Coming into 2025, we have continued driving DTC growth and significant improvements to profitability.
Levine: Leveraging the powerful reach of broadcast while capturing cost efficiencies and maximizing the value of our deep library and iconic IP.
Levine: 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.
Levine: With that operator, please open the line for questions.
Levine: Yeah.
Speaker Change: Thank you Sue we'd like to ask a question. Please press star followed by one on the telephony.
Speaker Change: If you would like to raise a question. Please press star followed by Kate.
Speaker Change: Well the Pangalos Youre question is I'm sure, you're all things that need to lately.
Speaker Change: We ask that you please limit yourself to one question.
Speaker Change: Our first question go to Steven Cahall of Wells Fargo. Stephen Please go ahead.
Speaker Change: Thank you.
Speaker Change: First on advertising.
Speaker Change: Interesting comment you made on Pluto and digital advertising and some of the pressure there.
Speaker Change: I think Chris you said that you expect that that pricing pressure might abate over time.
Speaker Change: Just wondering if you're seeing that yet is it is it firming up there's a lot of new digital inventory coming to market from a variety of platforms. So I just wanted to see if that's a trend do you have line of sight on yet.
Speaker Change: And then separately.
Speaker Change: Maybe for George So the FCC has been pretty vocal about some things he wants to do with affiliates and talking about reverse comp.
Speaker Change: Wanted to ask you to comment specifically on what the FCC may plan to do but as you look at the reverse compensation contribution to your affiliate revenue I think it's a little more than a $1 billion is that something that you think you could have some pressure over time or do you think this is just a lot of noise and you'll be able to work around this and hold that line relatively flat. Thank you.
Speaker Change: Okay.
Speaker Change: Hey, Steve. Thanks for your question. This is Chris I'll take the first part of that and then pass over to George to take the second piece of that all of this and we're definitely pleased with our performance for the quarter from the total outsource perspective broadcast really with significant CBS sports and the stable ahead really.
Speaker Change: It really helped us to make up some for some softness in the digital space now as you know last year. There were some new entrants that came into the digital supply space, which is impacting the volume of supply now we do definitely expect that that is going to balance out as supply demand dynamics will balance out.
Speaker Change: We've yet to see that at this moment, but we're confident that that's going to happen now more importantly that Steve. We are very pleased with the engagement that we continue to drive at both Paramount plus.
Speaker Change: <unk> at the end of the day. This is a hits driven business and our volume and hit content continues to drive more and more engagement and over time, we are definitely confident that that will.
Speaker Change: Turn into increased monetization.
George So: Great Hi, George So it looks at the relationship between Cvs in our affiliate partners is really a mutually beneficial one we provide valuable content and our affiliates provide scaled distribution. We're investing heavily in must have live sports and the most watched primetime entertainment schedule.
George So: If this dynamic were to change it would be difficult for us to continue to flip that bill and in that case. The affiliates are local viewers they would be harmed.
George So: We have a strong record of securing partnerships with all our station groups, including renewing 60, CBS affiliates over the past year alone. So I think that will continue.
Speaker Change: Thanks, Steve Operator next question.
Speaker Change: The next question goes to Robert Fishman Moffett Nathan.
Speaker Change: Please go ahead.
Speaker Change: Thank you. Good afternoon, everyone can you help us think about the right balance in licensing your library it and some of these newer original content to third party streamers versus keeping the content exclusively for Paramount plus just curious if an arms dealer licensing strategy is still able to command.
Speaker Change: The strong economics at it was that and then maybe if I can shift over to sports given the success of sports driving that strong viewership that you talked about on Cvs.
Speaker Change: Interested in your current thoughts on bidding for more sports right.
Speaker Change: The SPN ziv I'll be a package or the UFC package that that that's in the marketplace now.
Speaker Change: Do you differentiate between must have a nice to have thank you.
Speaker Change: Hey, Robert This is Brian I'll take the licensing piece.
Speaker Change: Content licensing is a growth business for us in particular, our secondary licensing business.
Speaker Change: Our content is valuable and it drives demand for us that said.
Speaker Change: We believe in using our most valuable IP to grow our owned and operated assets that doesn't mean, we're not going to continue to license that product as well maybe on a co exclusive basis or after it premieres on one of our owned and operated stations, but we believe that's the best best path for our content.
Speaker Change: Great. Thanks, Robert on the sports side look I believe we have a very robust sports portfolio. We've got core franchises, we feel very good about it but we're always going to be open and opportunistic we will continue to take a disciplined approach and our goal will always be to ensure that we have the optimal sports portfolio. We're always looking for sports rights that really matter.
Speaker Change: And it really drive audience and scale.
Speaker Change: Thanks, Robert Operator next question.
Speaker Change: The next question goes to Ben Swinburne of Morgan Stanley. Please go ahead.
Speaker Change: Thanks.
Speaker Change: This probably for intervene.
Speaker Change: But obviously interested in what everyone's take on it is I mean, you mentioned you expect another quarter of net subscription revenue growth in Q2 so.
Speaker Change: And growing fast enough to offset the linear declines as you take a longer term view can you talk a little bit about the.
Speaker Change: Patients you have for.
Speaker Change: Linear declines in streaming growth kind of the drivers behind those things that would be curious if you think what we're seeing in linear. This year is unusual based on some of the renewals you had last year or if this is sort of normal trend and how you think about the drivers of <unk> to see subscription revenue growth.
Speaker Change: Longer term from from the scale that you've achieved today with Paramount plus thank you.
Ben Swinburne: Yeah, Hey, Ben Thanks.
Speaker Change: Thanks for the question so.
Speaker Change: Look on the linear side of the business. The two major drivers there are.
Speaker Change: No.
Speaker Change: The rate of call it pay TV subscriber decline and the ecosystem more broadly and then the nature of the deals that we negotiate.
Speaker Change: The certainly the primary factor that is driving the revenue trend is the excuse me the subscriber decline and I think that will likely to continue to be the case. There has been some impact from deal renewals in the last couple of quarters, but if I look at the trends for instance in Q1.
Speaker Change: I don't expect major changes over the next few quarters there so.
Speaker Change: Net of what Youre seeing in terms of sub declines and deal renewals I think in Q1 is indicative of what we'll see over the next few quarters.
Speaker Change: On the streaming side the growth drivers there are very clear. It is continued subscriber growth. It is improvements in churn and <unk>, which ultimately drive.
Speaker Change: Revenue growth.
Speaker Change: And given that it is largely a fixed cost business. The more we can scale that revenue, we see significant improvements in profitability.
Speaker Change: Similar to what you've seen over the course of both 2024 and continuing to move forward in 2025.
Speaker Change: Thanks, Ben Operator next question.
Speaker Change: The next question to Richard Greenfield of like chat Richard Please go ahead.
Richard Greenfield: Hi, Thanks for taking the question, Chris I was watching your interview or radio interview the other day.
Richard Greenfield: About Taylor short and I think the amount of times that you mentioned Taylor Sheraton between you and George earlier.
Speaker Change: It's obvious how important killer Sheraton is to paramount's current and future.
Speaker Change: I'm curious why you haven't thought to acquire 101 studios to be fully vertically integrated with Taylor.
Speaker Change: 101 has been reportedly been for sale on and off for several years.
Speaker Change: I guess another way of asking the same question is like why is the current state of your relationship with Taylor Sheridan the optimal model for maximizing value for Paramount.
Speaker Change: Hey, rich that thanks for your question and thanks for reading the article.
Speaker Change: Listen.
Speaker Change: We absolutely.
Speaker Change: Value both of those parties, let me first start off by saying that there are two separate entities.
Speaker Change: Taylor and one to one <unk>.
Speaker Change: <unk> is a very gifted and unique creative.
Speaker Change: Paramount has an exclusive with him through 2028.
Speaker Change: And we own all the IP that comes out of that.
Speaker Change: We have a great relationship with them deep partnership that we've built over time and it's working.
Speaker Change: Oh, it's really speak for themselves and we're confident that that partnership and Heath will continue now.
Speaker Change: Now as it relates to <unk>. They are absolutely a preferred partner, we love working with them and David and what he and his team that built in.
Speaker Change: And so much so that we've invested in them, but we do like that.
Speaker Change: We have we think the incentives are based on where they should be and so we have maintained we plan to keep that current.
Speaker Change: Current process and the current relationship as it is.
Speaker Change: Now related to Taylor.
Speaker Change: He really helped us to learn some new models is a unique creative and we built a model that was uniquely around him as opposed to forcing them through our structure.
Speaker Change: Now, we think to use that as a playbook to bring in new creative and Jez Butterworth as one of the most recent ones, where we've seen great success with him with the agency and most recently with <unk>.
Speaker Change: And model and as we talked about was the biggest global premiere that we've had on Paramount plus today, So listen we love the relationship with Taylor, we're welcoming a new creative and we definitely will continue to use one on one as a preferred partner, but we like the relationships we have today.
Speaker Change: Thanks, operator.
Speaker Change: Operator next question.
Speaker Change: The next question guys, you Ric Prentiss of Raymond James Great pay per head.
Speaker Change: Okay.
Speaker Change: Thanks, Good afternoon, obviously, a lot of industry attention on streaming potential for bundling joint ventures, maybe M&A domestic international if you can just walk through the different types of combinations and the pros and cons of how you think about your desire or interest in participating in some of those.
Speaker Change: Versus a do nothing.
Chris Mccarthy: Hey, Rick Hey, Dan. This is Chris again, now happy to take that question and we're very happy with the success that we've had to date.
Chris Mccarthy: We only launched a few years ago, and we're already up to nearly 80 million global subs revenue this quarter up 16%. So real momentum, we're seeing great engagement growth really good solid improvement in churn and listen all of that is driven by our hits and we have a powerful combination between the CBS primetime slate sports and.
Chris Mccarthy: Our original on streaming where we really are in a class of our own. So we feel great about the momentum. We're just on the cusp of Paramount plus domestic profitability. So we feel really good now listen that said, we're always going to take an opportunistic look at different opportunities, whether that's bundling whether that's.
Chris Mccarthy: Doing something maybe more depot with a partner certainly nothing to announce today.
Chris Mccarthy: But I can say that we are big fans of bundles. In fact, we were some of the early movers.
Chris Mccarthy: But it's important that when we look at bundles, we do that at a very incremental audience point.
Chris Mccarthy: Point of view, so, particularly when their hardest to secure so you take something like what we did with Walmart.
Chris Mccarthy: Which has been has been and continues to be a great partnership for us or whether we bundle with hard bundle internationally with some great partners to get some distribution.
Chris Mccarthy: We will continue to look at all types of bundles, but really going to take an opportunistic look at that at really what's going to drive the most value and what's going to accelerate our plans.
Chris Mccarthy: Okay.
Rick: Thanks, Rick.
Chris Mccarthy: Operator, well take one last question.
Speaker Change: Thank you. The final question guys who've gone up morale of Evercore ISI. Please go ahead.
Speaker Change: The TV media were well ahead of expectations and above the core trends you saw last quarter.
Speaker Change: If you could talk about what drove the upside there in the quarter and maybe looking into Q2.
Speaker Change: Appreciate that sports AD inventory is sequentially lighter, but separate to that can you help us think about any current linear trends, especially as you head into the Upfronts and Levine I just wanted to make sure in terms of the guidance for the full year on OIBDA and free cash flow just want to make sure I didn't miss it but you're effectively.
Speaker Change: Reiterating the prior guidance. Thank you.
Speaker Change: Hey, Kirk and I'll take the first half of that question and then I'll pass it over to Nadeem for the second half I'll listen we're absolutely pleased with the performance that we had this year this quarter as it relates to revenue and.
Speaker Change: This quarter, as it relates to revenue, and certainly the strength of CBS and the broadcast slate, 17th straight year in a row at the number one, and four to the really big driver. Now that helped us to make up for some softness.
Speaker Change: in the digital landscape. And as Naveen talked about, we still have good solid sports in Q2, although a little lighter.
Speaker Change: So we continue to expect those trends to look very similar. And in terms of how things are looking in the upfront listen we feel really good about the conversations and discussions that we've been having.
Speaker Change: I will note that scatter in this quarter is up double digits which has always been a really interesting early indicator for us for the upfront
Speaker Change: So we're feeling really good. Now listen, you know, macro is certainly on people's mind, but you know everyone is giving us great feedback. We continue to hear good things particularly around the unique set of assets and the volume of hits and the really strong sports portfolio. So we're pretty good. Naveen.
Naveen: Yeah, thanks, Chris. So with respect to our comments on Pullier Guidance.
Naveen: It was built into our 2025 plan, remain in place. That includes, you know, significant improvements in the DC profitability that take advantage of the improvements in churn in ARPU and sub-revenue growth that we highlighted.
Naveen: It includes the ongoing non-content expense reductions that we're making across the company.
Naveen: and it includes finding ways to get more leverage from those content investments across all the dimensions of our business. Linear, streaming, licensing, theatrical and you heard a number of examples of that from the CEOs today.
Naveen: All that said, you know, the macro environment is uniquely dynamic right now, and that does create some uncertainty which has the potential to impact revenue primarily in advertising.
Naveen: At the same time, we are pushing the pedal harder on expense reductions [inaudible]
Naveen: But I think it's premature to try to quantify the impact of that on earnings and cash flow until we have more clarity on how all the macro stuff will unfold.
Naveen: So with that, I just want to thank everyone on behalf of the co-CEOs for joining us today. We are proud of the progress we're making to drive value as we deliver high performing content and continue to advance the business.
Naveen: We also want to thank our teams and our partners for their continued contributions. Thank you very much.
Have a great evening everyone.
Naveen: Thank you, the snout and two plays, cool. Thank you for joining, you may now
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