Paramount Global Inc. shares rose. Hours later Wednesday after the media and entertainment giant reported surprise adjusted quarterly earnings, as higher subscription prices fueled sales for its Paramount+ streaming platform.
Adjusted for impairment and restructuring, the company — which also oversees CBS, Comedy Central and Pluto TV — reported earnings per share of 4 cents, better than FactSet's estimate of a loss of 1 cent per share. Revenue fell 6% to $7.64 billion, worse than expectations of $7.83 billion.
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After the jump in sales, “we now expect to reach Paramount+ domestic profitability in 2025 — a significant milestone,” CEO Bob Bakish said.
He continued: “Looking to the future, we continue to focus on maximizing the return on our content investments and expanding the reach of streaming, while transforming the cost base of our business.”
Shares rose 1.2% after hours on Wednesday.
Paramount announced the results at a time when its streaming counterparts are beefing up prices and trying to cut development costs for films and series, after the industry spent years chasing subscribers. Investors have pressured streaming services to generate greater profits.
The company itself has reportedly made merger or acquisition offers. CNBC reported Tuesday that Warner Bros. Discovery Inc. WBD,
It halted talks on the takeover, while Skydance Media was still weighing its options on a potential deal.
Paramount, during its earnings call on Wednesday, declined to comment on any potential deal, or any relevant timeline associated with it.
Within its direct-to-consumer segment — which includes streaming services like Paramount+, Pluto TV and BET+ — revenue jumped 34% during the quarter, the company said. Subscription sales rose 43%, “driven by subscriber growth and price increases in Paramount+.” Ad sales increased by 14%.
While Paramount has benefited from strong NFL viewership, last year's Hollywood strikes and a weak worldwide advertising market took a toll on its television business. Revenues in the TV media segment overall decreased by 12%, and advertising revenues in this segment decreased by 15%.
