Paramount Global may cut 4.3x debt ratio further in 2024, early 2025

By Devika Patel

Knoxville, Tenn., April 30 – Paramount Global, formerly called ViacomCBS Inc., plans to sell its equity stake in Viacom18 to Reliance Industries and put some of the proceeds toward further reducing leverage.

A growth in OIBDA helped leverage last quarter, bringing the ratio down to 4.3x.

“In Q1, we delivered $209 million of free cash flow, an improvement of over $750 million versus a year ago,” executive vice president and chief financial officer Naveen Chopra said on the New York-based media and entertainment company’s first quarter ended March 31 earnings conference call on Monday.

“We also remained focused on reducing leverage, which improved three quarters of a turn to 4.3x, benefiting from growth in adjusted OIBDA.

“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 in early 2025,” he said.

Cash and cash equivalents were $2,384,000,000 as of March 31, 2024, compared to $2.46 billion as of Dec. 31, 2023.

Long-term debt was $14,607,000,000 as of March 31, 2024, practically unchanged compared to $14,601,000,000 as of Dec. 31, 2023.

Current debt was $1 million as of March 31, 2024, unchanged compared to $1 million as of Dec. 31, 2023.

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