Paramount Global, the parent of CBS, MTV and its namesake Hollywood movie studio, reported big gains in streaming subscribers in the third quarter, but overall sales were weaker than expected due to declines in TV and film revenue.
Bloomberg reports adjusted earnings were 49 cents a share, excluding some costs, the New York-based media giant said in a statement Friday. That surpassed Wall Street’s estimates of 23 cents. Revenue dropped 6% to $6.73 billion in the three months ended Sept. 30, missing analysts’ forecasts of $6.95 billion.
In Paramount’s direct-to-consumer division, which includes Paramount+ and the ad-supported Pluto TV streaming service, revenue increased 10% to $1.86 billion, driven by sports such as the NFL and UEFA and original programming like Tulsa Kings. Paramount+ added 3.5 million subscribers in the quarter, beating the 2.37 million analysts were expecting and bringing the total to 72 million. The unit reported its second quarter of profitability.
In Paramount’s TV media unit, which includes CBS, Nickelodeon, MTV and other channels, revenue decreased 6% to $4.3 billion, driven by driven by lower affiliate revenue and fluctuations in licensing revenue.
The company’s filmed entertainment unit saw revenue decrease 34% to $590 million, dragged down by a 71% decrease in theatrical revenue.
Paramount is working to close its merger with Skydance Media in a deal that’s expected to close in the first half of 2025 and would see producer David Ellison take over the company.
Like other traditional media companies, Paramount is focusing on its streaming business to boost growth as customers move away from traditional television, taking advertising dollars with them. Despite hits like the animated Sonic the Hedgehog franchise, Paramount has said it’s looking for a joint-venture partner in streaming, to better compete with market leaders Netflix Inc. and Walt Disney Co. On Wednesday, Warner Bros. Discovery Inc. posted surprising strength in adding new subscribers to its streaming unit, home to Max. The company’s shares rose 12% on the news.
Paramount was in talks with Warner Bros. about a merger for months before giving up when no concrete offer was received, a regulatory filing disclosed earlier this week. The company held talks with at least 12 alternative bidders before cutting a deal with Skydance.
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