Media and entertainment giant Paramount Global shared its third-quarter earnings report, which was disappointing in terms of revenue but saw strong streaming numbers.
Paramount saw $6.73 billion in revenue for Q3, missing out on the $6.95 billion estimated by analysts. Furthermore, the number represented a 6% drop compared to the same period last year. However, the company managed to clear the mark with adjusted earnings per share of $0.49, which came significantly above $0.30 from a year ago and $0.23 expected.
The biggest hit on Paramount’s revenue was delivered by declining studio and cable businesses. The company’s theatrical revenue was down by 71%, while lower spending by advertisers caused a 6% slide in TV media business revenue.
On the other hand, Paramount’s flagship streaming service, Paramount+, had an impressive quarter. The service added 3.5 million new subscribers, topping the 2.7 million additions from a year ago and 2.4 million additions that the analysts expected. Its adjusted operating income came at $49 million compared to estimates of a loss of $160.1 million, marking the second straight quarter of profit.
“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,” Paramount Global co-CEOs Brian Robbins, George Cheeks, and Chris McCarthy shared in a statement.
Paramount stock had a 4% drop on Friday to close at $11.07 per share. The stock is currently 23.13% down year-to-date.