Paramount Posts Q3 Streaming Subs Gain, Lower Profit

Despite delivering gains in overall revenues and streaming customers, Paramount saw its Q3 profit drop to $231 million from $538 million on revenues that were 5 percent higher at $6.9 billion.

“In the third quarter, Paramount continued to execute on our differentiated strategy anchored by our broad range of popular content, our diverse portfolio of platforms and our truly global operating reach,” said Bob Bakish, president and CEO. “That strategy continued to drive growth in subscriptions across our streaming platforms, with Paramount+ adding 4.6 million subscribers. Paramount Pictures also extended its stellar run with its sixth number one film in 2022. Looking forward, we couldn’t be more excited about the array of sensational content coming to Paramount+ in the fourth quarter, as well as the launch of the service in France, Germany, Austria and Switzerland.”

TV media revenues fell by 5 percent to $4.9 billion, with ad revenues down 3 percent to $2 billion, affiliate and subs revenues falling 5 percent to $2 billion and licensing and other revenues falling 9 percent to $975 million.

Direct-to-consumer revenues saw double-digit gains, rising 38 percent to $1.2 billion. The company ended Q3 with almost 67 million direct-to-consumer customers, reflecting the addition of 4.6 million subscribers and the removal of 1.9 million Paramount+ subscribers following the launch of SkyShowtime in the Nordics. Paramount+ was the number one streaming service in the U.S. in sign-ups and gross subscriber additions year-to-date according to Antenna’s September 2022 report. Ad revenues in this segment were up 4 percent to $363 million, while subs revenues grew by 59 percent to $863 million. Paramount+ revenues grew 95 percent year-over-year. The segment posted a wider loss on the heels of investments in content, marketing and international expansion.

Filmed entertainment also surged, with revenues rising 48 percent to $783 million, largely driven by the box-office success of Top Gun: Maverick.