Shares of Paramount Global Inc. were up after hours on Wednesday after the media and entertainment giant reported a surprise adjusted quarterly profit, as higher subscription prices fattened sales for its Paramount+ streaming platform.
Adjusted for impairments and restructuring, the company — which also oversees CBS, Comedy Central and Pluto TV — reported a per-share profit of 4 cents, better than FactSet estimates for a 1 cent per-share loss. Revenue fell 6% to $7.64 billion, worse than expectations for $7.83 billion.
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Chief Executive Bob Bakish said that following a jump in sales, “we now expect to reach domestic Paramount+ profitability in 2025 — a significant milestone.”
“Looking ahead, we continue to be focused on maximizing the return on our content investments and scaling streaming, while transforming the cost base of our business,” he continued.
Shares were up 1.7% after hours on Wednesday.
Paramount reported the results as its streaming peers consolidate, raise prices and try to cut costs on film and series development, after the industry spent years chasing subscribers. Investors have pressured streaming services to produce greater profit.
The company itself has reportedly entertained bids for a merger or acquisition. CNBC reported on Tuesday that Warner Bros. Discovery Inc.
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had stopped talks on an acquisition, while Skydance Media was still weighing its options on a potential deal.
Paramount, during its earnings call on Wednesday, declined to comment on any potential deal-making, or any related timeline tied to it.
The company said that within its direct-to-consumer segment — which includes streaming services like Paramount+, Pluto TV and BET+ — revenue jumped 34% during the quarter. Subscription sales rose 43%, “driven by subscriber growth and pricing increases for Paramount+.” Ad sales were up 14%.
While Paramount benefited from strong NFL viewership, last year’s Hollywood strikes and a weaker worldwide ad market weighed on its TV business. Revenue in that segment fell 15%.
This story originally appeared on Marketwatch
