Paramount Global (NASDAQ:PARA) shares rose 4% in premarket trading after it surprised investors with a fourth-quarter profit despite revenues slipping as a result of weaker ad spend.
Earnings per share came in at 4 cents during the last three months of 2023, beating Wall Street estimates of a 1-cent loss.
Total revenue fell 6% year-on-year to reach US$7.64 billion, slightly below the US$7.85 billion forecasted by analysts.
Paramount+, the group’s streaming service, was the standout performer of the media conglomerate, seeing sales soar 69% as it reached 67.5 million subscribers — a net increase of 4.1 million.
The streaming platform known for shows like Yellowjackets, The Curse and the revamped Frasier is expected to turn a profit by 2025.
Subscription revenue saw a 43% increase, attributed partly to price hikes, while the entire direct-to-consumer segment grew by 34%.
Paramount's CEO, Bob Bakish said: "Looking ahead we continue to be focused on maximizing the return on our content investments and scaling streaming while transforming the cost base of our business.
“And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets.”
On Wednesday, reports revealed Warner Bros Discovery had slammed the brakes on plans to acquire the CBS and Showtime owner after several months of deliberations.
Skydance Media is among companies still in the running to purchase Paramount, sources said, with CNBC parent Comcast open to a partnership but not a takeover.