Shares of Paramount Global Inc. rose after-hours Wednesday, after the media and entertainment giant reported a surprise adjusted quarterly profit, as higher subscription prices fattened sales for its Paramount+ streaming platform.
Excluding writedowns and restructurings, the company — which also oversees CBS, Comedy Central and Pluto TV — reported earnings per share of 4 cents, better than FactSet’s estimate for a loss of 1 cent per share. Revenue fell 6% to $7.64 billion, worse than expectations for $7.83 billion.
Paramount PARA,
CEO Bob Bakish said that, following an increase in sales, “we now expect to reach domestic profitability for Paramount+ in 2025 – a significant milestone.”
“As we look ahead, we continue to focus on maximizing the return on our content investments and scaling streaming, while transforming the cost base of our business,” he continued.
Shares rose 1.2% after Wednesday’s close.
Paramount reported the results as its streaming rivals consolidate, raise prices and try to cut development costs on films and series, after the industry spent years chasing subscribers. Investors have been pressuring streaming services to produce more profits.
The company itself has reportedly been considering offers for a merger or acquisition. CNBC reported Tuesday that Warner Bros. Discovery Inc. WBD,
had halted negotiations for an acquisition, while Skydance Media was still evaluating its options on a potential deal.
Paramount, during its earnings call Wednesday, declined to comment on any potential deal or any timeline related to it.
The company said that in its direct-to-consumer segment, which includes streaming services such as Paramount+, Pluto TV and BET+, revenue rose 34% during the quarter. Subscription sales increased 43%, “driven by subscriber growth and price increases for Paramount+.” Ad sales increased 14%.
While Paramount has benefited from strong NFL viewership, last year’s Hollywood strikes and a weaker global advertising market have weighed on its TV business. Revenues in the television media segment overall fell 12%, and advertising revenues in that segment fell 15%.