Paramount Global reported second-quarter sales that beat analysts’ projections, thanks in part to a 40% jump in its streaming TV business.
The parent of CBS, MTV and other TV networks reported revenue of $7.62 billion, beating analysts’ estimates of $7.43 billion. Earnings came to 10 cents a share, the company said Monday, beating Wall Street projections for a break-even quarter.
The shares rose as much as 7.8% to $17.35 in after-hours trading before giving up much of their gain. They were down 4.7% this year through the close of regular trading on Monday.
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Paramount managed to beat estimates despite weakness in the TV ad market. Ad sales at traditional networks fell 10% to $1.95 billion.
The company reported 61 million subscribers for its Paramount+ streaming service, slightly below forecasts for 61.2 million. The direct-to-consumer unit lost $424 million, compared with analysts’ projections for a loss of $527 million. Its portfolio also includes the ad-supported, free-to-watch Pluto service. Ad revenue for its direct-to-consumer streaming platforms increased 21% over the quarter, the company reported.
“The combination of rapid inventory expansion and broad integration with leading buy-side ad-tech platforms, means we are now growing DTC advertising, not just as a replacement for linear, but as a compelling video alternative for the long tail of advertisers who have historically relied on social media and short-form video advertising,” said Paramount Chief Financial Officer Naveen Chopra.
Profit at Paramount’s film studio tumbled to $5 million. Last year’s second quarter included results from the hit “Top Gun: Maverick.”
The company also announced the sale of its Simon & Schuster publishing business to KKR & Co. for $1.62 billion and plans to use the proceeds to reduce debt.
