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Media company Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) reported second-quarter financial results after the market close Thursday.
Here are the key highlights.
What Happened: Paramount reported second-quarter revenue of $6.81 billion, down 11% year-over-year. The revenue total missed a Street consensus estimate of $7.21 billion, according to data from Benzinga Pro.
The company reported adjusted earnings per share of 54 cents, which may not be comparable to the 10 cents per share reported in the second quarter of last year and a Street consensus estimate of 12 cents per share.
Revenue by segment totaled as follows:
TV Media: $4.27 billion, -17% year-over-year
DTC: $1.88 billion, +13% year-over-year
Filmed Entertainment: $679 million, -18% year-over-year
"Our strong performance in Q2 demonstrates that we are delivering on our strategic priorities. We are proud of our results, including significant earnings growth largely driven by our DTC segment," co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said in a statement.
The company's DTC segment was led by subscription revenue that was 12% higher and advertising revenue that grew by 16% on a year-over-year basis.
Paramount+ saw 46% higher revenue on a year-over-year basis. The platform ended the quarter with 68 million subscribers, down 2.8 million, which was impacted by an exit from a bundle agreement in South Korea.
Average revenue per user was up 26% year-over-year for Paramount+. The company said the streaming platform led the industry in signups for a fourth straight year.
The TV segment saw the CBS network finish the 2023-2024 season as the No. 1 network for primetime for the sixteenth straight year. The network had eight of the top 10 broadcast series, according to the company.
TV advertising revenue was down 11% year-over-year and affiliate and subscription revenue for the segment was down 5% year-over-year.
Paramount's Filmed Entertainment segment was led by "IF" and "A Quiet Place: Day One." Theatrical revenue was down 40% year-over-year, due to the comparable year having "Transformers: Rise of the Beasts" in theaters.
What's Next: Paramount highlighted its recently announced merger with Skydance Media to form a new Paramount. The transaction is expected to close in the first half of 2025, the company said, pending the outcome of the 45-day go-shop period and closing requirements.
DTC profit has grown by $900 million over the last four quarters. The Paramount+ streaming platform is on track to reach domestic profitability in 2025, the company said.
"Looking ahead, we will continue to aggressively execute on our Strategic Plan which focuses on transforming streaming to accelerate profitability, streamlining our organization – including at least $500 million in annualized cost savings – and improving the balance sheet by growing free cash flow," the co-CEOs said.
PARA Price Action: Paramount shares were trading 5.78% higher at $10.80 after-hours Thursday versus a 52-week trading range of $9.54 to $17.50.
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