Media giant Paramount has reported third quarter earnings that show improvements in its streaming business but a continued decline in its linear TV business and studio division.
For the first nine months of 2024, streaming losses sit at $211 million, an almost $1 billion improvement when compared to the $1.18 billion lost in the same time frame last year, with 3.5 million subscriber additions in Q3 to the Paramount+ service as well.
That platform, at the end of Q3 on September 30, had 72 million subscribers.
Direct-to-consumer revenue, meanwhile, in Q3 was up by 10% and for that quarter alone, a $49 million profit was generated, it has now been revealed by Paramount in Q3 results published late last week.
However, the company has registered continued declines in its linear TV business, with a pullback in its studios division.
Revenue across Paramount as a whole was $6.73 billion, a 6% drop compared to the $7.13 billion seen in Q3 2023.
From a sports rights point of view, Paramount's US network CBS holds rights to several major properties such as European club soccer’s UEFA Champions League, American football’s NFL, PGA Tour golf, and top-tier college sports. Earlier this year, it aired the most-watched NFL Super Bowl in history.
George Cheeks, Chris Mccarthy, and Brian Robbins, Paramount co-chief executives, said in a joint statement: “Our hit content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers ...
“Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters, and, across the company, we continue to successfully execute non-content cost reductions that will result in $500 million in annual run rate savings.
“With two very strong quarters under our belt, it’s evident that we have clear momentum and that our plan is working thanks to our very talented teams and creative partners.”
Adjusted OIBDA (operating income before depreciation and amortization), meanwhile, increased 20% at $858 million.
The figures come ahead of the media giant’s merger with heavyweight film production firm Skydance Media, which is expected to close in the first half of 2025, in a deal worth $28 billion.
Through this tie-up, New Paramount has been formed, through two separate transactions. Firstly, Skydance will acquire the National Amusements firm which owns the controlling stake (77%) in Paramount, while this will then be followed by a merger between Skydance and Paramount Global.
