Paramount Global shares rise as streaming losses narrow

Paramount Global reported third-quarter earnings that beat analysts’ estimates thanks to narrowing losses at its Paramount+ streaming business. Third-quarter profit for the owner of CBS, MTV and other channels came to 30 cents a share, excluding some items, the company said Thursday. Analysts were forecasting 10 cents. The key was the improvement at Paramount’s direct-to-consumer unit, home of the Paramount+ streaming business and the Pluto online TV operation. The loss in that division shrank to $238 million, less than the $438 million analysts expected. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here Subscribers to Paramount+ rose to more than 63 million, with 2.7 million net additions in the quarter, exceeding Wall Street estimates. Subscriber revenue gained 46% and ad sales expanded by 18%, the company said. Also read: CBS says Super Bowl ad revenue is virtually sold out The company now expects streaming losses to be lower this year. Earlier, CEO Bob Bakish had said they would peak this year. Shares of Paramount rose as much as 8.6% to $12.95 in extended trading after the announcement. The company, controlled by the Redstone family, has been struggling with the decline in traditional television viewing and a still very costly expansion into online TV. Third-quarter revenue totaled $7.13 billion, short of the $7.15 billion average of Wall Street estimates. Revenue from the company’s traditional TV networks fell 7.7% to $4.57 billion, with advertising down 14%. Fees from cable operators were unchanged. Paramount Pictures, the company’s film studios, reported a loss of $49 million. Releases in the quarter included the latest films from its “Mission: Impossible” and “Teenage Mutant Ninja Turtles” franchises. —Bloomberg News Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

Paramount Global shares rise as streaming losses narrow

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