Paramount Exceeds Expectations with Boosted Streaming Results
Paramount Global, the parent company of CBS and MTV, has shared its first-quarter results that have surpassed analysts’ expectations, thanks to the strong performance of its streaming platform, Paramount+. Revenue hit $7.19 billion, exceeding Wall Street’s estimate of $7.10 billion. Earnings per share, excluding certain items, reached 29 cents, surpassing analysts’ expectations of 25 cents.
Although both revenue and profit saw a decline compared to the previous year, especially since last year included CBS hosting the Super Bowl, Paramount’s direct-to-consumer unit, which includes Paramount+, saw a 9% increase in sales and managed to decrease its losses. Paramount is in the process of merging with Skydance Media, and despite legal challenges, the company expects the deal to close in the first half of this year.
Paramount+ added 1.5 million subscribers in the first quarter, surpassing analysts’ estimates of 1.41 million, bringing its total subscriber count to 79 million. On the traditional TV front, Paramount saw a decline in advertising revenue and subscriber and affiliate revenue, partly due to the tough comparisons with the previous year’s Super Bowl broadcast.
In the filmed entertainment division, Paramount reported a 4% increase in revenue, reaching $627 million. The film industry faces uncertainty due to Trump’s proposed tariffs on movies produced outside the U.S. which could have a significant impact. In comparison, Warner Bros. Discovery reported weak first-quarter sales attributed to declines in pay-TV subscriptions and a less robust movie lineup.
These results showcase the ongoing shifts and challenges in the entertainment industry, with streaming services like Paramount+ playing an increasingly significant role.
