Paramount reported mixed third-quarter results for 2024. The entertainment conglomerate’s streaming service performed well, and advertising revenue rose by 18% year over year. However, its traditional TV media and film segments underperformed.
Increase in Paramount+ subscribers
Paramount said it added 3.5 million new subscribers in the third-quarter, increasing its total subscriber count to 72 million.
Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins said in a joint statement that the company’s “hit content” drove strong quarterly performance, “solidifying” its position as the #4 global subscription video-on-demand (SVOD) service.
They added that the company’s direct-to-consumer segment “delivered profitability for the second quarter in a row,” up more than $1 billion over the past year.
Poor revenue results
Third-quarter revenue missed the mark, down 6% to $6.73 billion.
Revenue from Paramount’s “TV Media” segment, which includes Nickelodeon, CBS, and MTV, dropped 6% year-over-year to $4.3 billion. This was mainly because of weak affiliate and licensing revenue.
The company’s “Filmed Entertainment” segment didn’t fare that well either, with revenue plunging by 34% to $590 million. Its studio unit only released one theatrical hit in the quarter – the animated film “Transformers One“.
EPS a bright spot
Adjusted diluted EPS from continuing operations was 63% higher than the previous year, at $0.49, and beating analyst expectations.
Skydance Merger
Paramount expects its planned merger with Skydance Media to be finalized in the first half of next year.
You may be interested in: “Netflix reported revenue of $9.8 billion for Q3 2024”
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