On Thursday, Paramount Global’s stock moved a bit higher after it came up with its third-quarter earnings, which showed strong revenue and subscription trends. The media giant made the after-hours move on top of an already strong day. On the same day, during the regular session, the stock closed more than 10% higher.
According to CNBC.com,
“Paramount — home to brands such as CBS, Showtime, BET, Nickelodeon, and its namesake movie studio — reported a 38% increase in revenue year over year. In the third quarter, streaming service Paramount+ saw 2.7 million net additions to its 63 million total subscriber count. The company also narrowed losses in its streaming segment to $238 million from $343 million a year ago.”
Paramount performed better than Wall Street estimates in the third quarter. As per reports from LSEG (formerly Refinitiv), Paramount’s earnings per share was 30 cents, as compared to Wall Street estimates of 10 cents. Furthermore, the revenue was $7.13 billion, while the estimates were $7.099 billion.
By the end of September 30, Paramount’s profit came out to be $295 million, which amounts to 43 cents per share. This was up from last year’s $231 million (33 cents per share). During the period, earnings per share were 30 cents, which was adjusted for one-time items.
According to the CEO of Paramount, Bob Bakish, the company is still in the process of executing its strategy and prioritizing prudent investment in streaming. At the same time, the company is trying to maximize the earnings of traditional business. The CEO is optimistic about achieving more growth in total company earnings in 2024.
Apart from Paramount, other media stocks also reported higher earnings on Thursday. Streaming device maker Roku’s stock increased by 30% due to its higher earnings in the last quarter.