Paramount Global beats Q3 earnings estimates, misses revenue per Investing.com
Investing.com — Paramount Global (NASDAQ: PARA ) reported third-quarter earnings that beat analyst expectations, while revenue missed estimates. The media company’s stock fell 0.35% following the release.
Paramount posted adjusted earnings per share of $0.49, beating the analyst consensus of $0.24 by $0.25. Revenue for the quarter came in at $6.73 billion, missing the estimate of $6.94 billion and down 6% YoY from $7.13 billion.
The company’s Direct-to-Consumer (DTC) segment showed strong growth, with revenue up 10% YoY to $1.86 billion. Paramount+ added 3.5 million subscribers in the quarter, bringing its total to 72 million. The DTC segment turned a profit for the second quarter in a row, with adjusted OIBDA improving by $287 million YoY to $49 million.
TV Media revenue decreased 6% to $4.3 billion, primarily due to lower affiliate revenue and fluctuations in licensing revenue. Filmid Entertainment’s revenue fell 34% to $590 million, reflecting fewer theatrical releases compared to last year.
“Our premium content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers, solidifying our position as the #4 global SVOD service,” said George Cheeks, Chris McCarthy and Brian Robbins, Co- CEOs of Paramount Global. “Our DTC segment successfully delivered a profit for the second quarter in a row, improving by more than $1 billion over the past four quarters.”
The company also noted that it is developing $500 million in annual cost savings as part of its efforts to streamline operations. Paramount expects to close its previously announced Skydance transaction in the first half of 2025, subject to regulatory approvals and customary closing conditions.
