Paramount Global Q3 Earnings Report

Investing.com — Paramount Global (NASDAQ: PARA) reported third-quarter earnings that surpassed analyst expectations, while revenue fell short of estimates. The media company's stock edged down 0.35% following the release.

Earnings Highlights

• Adjusted EPS: $0.49 (beat forecast of $0.24 by $0.25)
• Revenue: $6.73 billion (missed $6.94 billion estimate, down 6% YoY from $7.13 billion)

Segment Performance

Direct-to-Consumer (DTC)

• Revenue Growth: 10% YoY, totaling $1.86 billion
• Subscribers: Paramount+ added 3.5 million, reaching 72 million total
• Profitability: Achieved for the second consecutive quarter, with adjusted OIBDA improving by $287 million YoY to $49 million

TV Media

• Revenue: Decreased 6% to $4.3 billion due to lower affiliate revenue and licensing fluctuations.

Filmed Entertainment

• Revenue: Fell 34% to $590 million, attributed to fewer theatrical releases compared to the prior year.

CEO Comments

"Our hit content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers, solidifying our position as the #4 global SVOD service," said Co-CEOs George Cheeks, Chris McCarthy & Brian Robbins. "Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters."

Future Outlook

The company noted it is advancing $500 million in annual run rate cost savings as part of its efforts to streamline operations. Paramount expects to close its previously announced Skydance transactions in the first half of 2025, subject to regulatory approvals and customary closing conditions.