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Paramount Global Q3 Profit Rises Amid Surge in Streaming and Film Revenue, Despite Traditional TV Downfall

Paramount Global announces its direct-to-consumer (DTC) streaming losses for 2023 will be lower than 2022, as the company adds 2.7 million subscribers during the third quarter, exceeding analyst expectations.

Overview

  • Paramount Global's third-quarter profit rose mainly due to a 38% increase in streaming business and a 14% hike in film division revenue, particularly from new releases in the 'Mission Impossible' and 'Teenage Mutant Ninja Turtles' franchises.
  • The company's streaming division, Paramount+, added 2.7 million subscribers in Q3, significantly surpassing analysts' estimate of 2.02 million additions.
  • Despite a 23% surge in expenses at the streaming division to $1.93 billion, Paramount managed to reduce its adjusted operating loss to $238 million, down from $343 million a year earlier.
  • The company's traditional TV business, however, struggled with flat distribution revenue, a 14% drop in traditional video advertising, and an over 8% decrease in TV media division revenue, mainly due to the global ad market's weakness and decreased licensing revenue.
  • Paramount Global's CEO confirmed that the streaming investment reached its peak ahead of schedule, leading to lower direct-to-consumer (DTC) losses in 2023 compared to 2022.