- Paramount beat earnings and sales estimates as it received a boost from football viewership and an increase in streaming subscribers.
- The TV Media division was responsible for more than half of the company’s revenue as it increased the number of fans watching NFL games on CBS.
- The company’s Paramount+ streaming service added 2.7 million subscribers.
Soccer fans watching games on CBS and a surge in streaming subscribers helped Paramount Global (PARA) post better-than-expected results, with shares soaring more than 11% in early trading Friday.
The media giant reported third-quarter fiscal 2023 earnings per share (EPS) of $0.30, three times estimates. Revenue rose 3% year over year to $7.13 billion, also ahead of forecasts.
More than half of its revenue came from its TV Media division. Paramount indicated that this was driven by the strong performance of CBS, especially the NFL telecasts, which were “getting their best seasonal ratings in years.”
Revenue from the company’s Direct-To-Consumer (DTC) unit rose 38% to $1.69 billion. Subscription revenue rose 46% to $1.26 billion, driven by an increase of 2.7 million subscribers and higher prices on its streaming service, Paramount+, along with pay-per-view events. Paramount+ now has 63 million subscribers. Losses in DTC fell 31% from a year ago.
Paramount noted that strikes by Hollywood writers and actors limited the content available for licensing and that revenue fell 12%.
CEO Bob Bakish explained that the company’s streaming investment “peaked ahead of schedule” and that Paramount is on track to “achieve significant growth in the company’s total earnings in 2024.”
Paramount Global shares hit a more than four-year low late last month and, despite Friday’s gains, remained deep in negative territory for the year.