2023-08-07 16:23:14 ET
Paramount Global ( NASDAQ: PARA ) is 5.3% higher postmarket after beating expectations on top and bottom lines with its second-quarter earnings -- with a sharp gain in streaming revenue almost entirely making up for year-over-year declines in its legacy businesses.
The company also confirmed it reached a definitive deal to sell its Simon & Schuster publishing arm to KKR for $1.62B in all cash .
Revenues fell 2% overall to $7.62B, paced by a 2% drop in its biggest business, TV Media (which saw revenues fall to $5.16B from $5.26B). And facing a tough comparison against last year's runaway success of Top Gun: Maverick, Filmed Entertainment revenues fell 39% to $831M.
But Direct-To-Consumer revenues jumped 40% to $1.67B, paced by a 47% gain at Paramount+, which jumped to 61M subscribers.
In Q2, we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024," CEO Bob Bakish said. "Notably, Paramount+ revenue grew 47%, total DTC ad revenue increased 21%, and global viewing hours on Paramount+ and Pluto TV were up 35% year-over-year. And despite the environment, TV Media continued to contribute significant earnings.
Operating income swung to a loss of $250M from a year-ago gain of $819M, and adjusted operating income before depreciation and amortization fell 37% to $606M, though those figures beat expectations. A GAAP loss in operating income turned into a non-GAAP gain of $606M due mainly to $697M in programming charges from integrating Showtime into Paramount+.
Conference call to come at 4:30 p.m. ET .
For further details see:
Paramount gains 5% as streaming paces revenue beat, Simon & Schuster sells for $1.6B