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.
Paramount posted adjusted earnings per share of $0.49, beating the analyst consensus of $0.24 by $0.25. Revenue for the quarter came in at $6.73 billion, missing the $6.94 billion estimate and declining 6% YoY from $7.13 billion.
The company's Direct-to-Consumer (DTC) segment showed strong growth, with revenue increasing 10% YoY to $1.86 billion. Paramount+ added 3.5 million subscribers in the quarter, bringing its total to 72 million. The DTC segment achieved profitability 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, primarily due to lower affiliate revenue and fluctuations in licensing revenue. Filmed Entertainment revenue fell 34% to $590 million, reflecting fewer theatrical releases compared to the prior year.
"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 George Cheeks, Chris McCarthy & Brian Robbins, Co-CEOs of Paramount Global. "Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters."
The company also 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.