The integration of Paramount+ with Showtime has helped the company boost its subscription numbers, as well as advertising revenue from its streaming service, while creating room for it to keep costs in check.
Despite expenses at the streaming division jumping 23% to $1.93 billion, the company managed to narrow its adjusted operating loss to $238 million from $343 million a year earlier, partly due to benefits from price hikes. While streaming is the chief driver of revenue growth for the company, it remains unprofitable. That has forced it to juggle growth with cost controls at that unit because the highly profitable cable division is suffering from a rapid sales decline. Revenue at its TV media division fell 8% to $4.57 billion, driven by a 14% drop in advertising revenue due to softness in the global advertising market and lower political advertising, Paramount said.
Revenue was $7.13 billion for the quarter ended Sept. 30, compared with analysts' estimate of $7.10 billion, according to LSEG data. The company's adjusted earnings per share were also above estimates.