Paramount Global beat Wall Street analysts’ estimates in the third quarter, thanks in large part to its flagship stream Paramount+, which added 2.7 million subscribers to 63 million worldwide.
Total revenue reached $7.13 billion, up 3% from the same period last year, while adjusted earnings per share rose 21% to 36 cents. The analyst consensus was for profit of 11 cents and revenue of $7.12 billion.
Streaming was the highlight of the results: the division’s revenue rose by 38% compared to the same period last year. Subscription revenue increased 46% to $1.3 billion, driven by subscriber growth and P+ price increases as well as revenue from pay-per-view events.
Paramount said it now forecasts full-year 2023 DTC losses to be lower than in 2022, with direct-to-consumer losses in the fourth quarter in line with last year’s fourth quarter. Stream operating losses fell from a loss of $343 million to $238 million in the third quarter.
Investors welcomed the largely optimistic report, although in some aspects it reflected a traditional company still moving toward a profitable digital future. Shares of Paramount, which rose more than 10% in Thursday’s regular session, rose another 10% in after-hours trading.
Streaming ad revenue increased 18%, while viewing time on Paramount+ and Pluto TV increased 46%.
The TV media division’s revenue, on the other hand, fell 8% due to weak advertising activity and fell 14%.
Affiliate and subscription revenue remained “substantially flat,” the company said. The lower affiliate revenue was offset by revenue from pay-per-view events. In its earnings release, Paramount said ad revenue was hurt by a lack of political ads (as has been the case at other media companies this offseason), but also by what it more ominously described as “continued weakness.”
With Filmed Entertainment, revenue rose 14% to $891 million. The company said licensing and “other” revenue fell 7% due to tough comparisons to Top Gun: Maverick and lower studio rental and production services revenue due to the WGA and SAG-AFTRA strikes.
The labor unrest also negatively impacted the bottom line, as Paramount reported an operating loss before depreciation and amortization of $49 million, compared to a positive OIBDA of $41 million in 2022. The turn in the red was on “the timing and mix of theatrical releases each year, as well as additional costs resulting from production shutdowns and reduced revenue from studio rental and production services,” the earnings statement said.
Source: Deadline
Joseph Fearn is an entertainment and television aficionado who writes for The Fashion Vibes. With a keen eye for what’s hot in the world of TV, Joseph keeps his readers informed about the latest trends and must-see shows.
