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 the 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.
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.
The company now expects streaming losses to be lower this year. Earlier, Chief Executive Officer 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 latest films from its Mission: Impossible and Teenage Mutant Ninja Turtles franchises.