Paramount Global's third-quarter earnings exhibited an unexpected year-over-year increase, despite a decline in revenue that fell below Wall Street's expectations. The company's streaming service, Paramount+, successfully added 3.5 million subscribers. Adjusted earnings per share climbed to $0.49 for the three months ending on September 30, a rise from $0.30 a year earlier and surpassing the predicted consensus of $0.24.
Conversely, the media, streaming, and entertainment company's revenue decreased by 6% year over year to $6.73 billion, falling short of the estimated $6.97 billion. The decline in Paramount's TV media revenue was notable, decreasing by 6% to approximately $4.3 billion, attributed to declines across affiliate and subscription revenue, licensing, and advertising.
Additionally, sales from the filmed entertainment sector plummeted by 34% to $590 million, with theatrical revenue facing a staggering 71% decline. In contrast, the direct-to-consumer segment experienced a 10% year-over-year increase in sales, totaling $1.86 billion, fueled by improvements in advertising and subscriptions.
Notably, Paramount+ welcomed 3.5 million new subscribers in the third quarter, boosting its total membership base to 72 million, compared to the consensus estimate of 70.8 million from Visible Alpha. Advertising during this quarter benefited from unprecedented political spending, along with the return of the National Football League and college football, as co-Chief Executive George Cheeks conveyed to analysts during a conference call. "Digital ad growth remains strong with a noticeable increase in demand year over year, reflecting our competitive edge in terms of price, quality, and scale, which will continue to drive our growth," stated Cheeks on the call. Looking ahead, Paramount anticipates the completion of its planned merger with production company Skydance Media in the first half of 2025..