Media company Paramount Global (NASDAQ:PARA) reported third-quarter financial results Friday.
Here are the key highlights.
Paramount reported third-quarter revenue of $6.73 billion, down 6% year-over-year. The revenue total missed a Street consensus estimate of $6.95 billion.
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The company reported adjusted earnings per share of 49 cents, versus 30 cents per share reported in the second quarter of last year and a Street consensus estimate of 24 cents per share.
Revenue by segment totaled as follows:
- TV Media: $4.3 billion, -6% year-over-year
- DTC: $1.9 billion, +10% year-over-year
- Filmed Entertainment: $590 million, -34% year-over-year
The company’s DTC segment was led by subscription revenue that was 7% higher and advertising revenue that grew by 18% year-over-year. The return of the NFL and UEFA, along with original series like “Tulsa King” — which had the platform’s most significant global season 2 debut—and “Mayor of Kingstown,” boosted user acquisition this quarter. Post-theatrical releases such as “A Quiet Place: Day One” and “IF” contributed to the growth. Pluto TV saw strong engagement, leading to higher monetization.
Paramount+’s revenue increased 25% year over year. The platform ended the quarter with 72 million subscribers, up 3.5 million.
Average revenue per user was up 11% year-over-year for Paramount+.
TV Media advertising revenue was down 2% year over year, and affiliate and subscription revenue for the segment was down 7% year over year.
TV Media saw gains driven by sports, news, and entertainment. CBS live news channels recorded significant year-over-year growth in viewing minutes. “The Daily Show” expanded its reach across streaming, linear, and social media. MTV’s Video Music Awards attracted its largest audience in four years, while “The Challenge” achieved its highest-ever share in the franchise’s history.
Paramount Pictures’ varied film lineup delivered strong results, highlighted by “A Quiet Place: Day One,” which broke franchise records with its biggest opening at the global box office, reaching $261 million in worldwide earnings. “Transformers One” has also performed well, grossing $127 million globally.
Theatrical revenue was down 71% year-over-year.
Operating income declined 46% to $337 million.
The Skydance transactions require regulatory approvals and standard closing conditions. They are expected to finalize in the first half of 2025, as previously announced.
George Cheeks, Chris McCarthy, and Brian Robbins, co-CEOs, highlighted Paramount’s strong third-quarter performance driven by hit content. Paramount+ gained 3.5 million new subscribers and solidified its #4 global SVOD service rank.
The Direct-to-Consumer segment achieved profitability for the second consecutive quarter, showing a $1 billion improvement over the past year. They also emphasized successful non-content cost reductions expected to generate $500 million in annual savings.
PARA Price Action: Paramount stock is down 0.17% at $11.51 premarket at last check Friday.
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