Total revenues at Paramount rose by 3 percent to $7.13 billion in the third quarter, with double-digit gains in its direct-to-consumer and filmed entertainment segments.
“We continue to execute our strategy and prioritize prudent investment in streaming while maximizing the earnings of our traditional business,” said Bob Bakish, president and CEO. “In Q3, we successfully grew direct-to-consumer revenue and Paramount+ subscribers while narrowing DTC losses over 30 percent. In fact, we now expect DTC losses in 2023 will be lower than in 2022—meaning streaming investment peaked ahead of plan. Looking ahead, we remain on the path to achieving significant total company earnings growth in 2024.”
Direct-to-consumer revenues rose 38 percent to $1.69 billion, with subscription revenues up 46 percent to $1.3 billion, while ad revenues across Paramount+ and Pluto TV rose 18 percent to $430 million. Paramount+’s revenues were up 61 percent as subs topped 63 million, a gain of 2.7 million in the period. The division’s loss fell by 31 percent to $238 million.
The TV media segment saw revenues slip by 8 percent to $4.57 billion, with ad revenues down 14 percent to $1.7 billion, while affiliate and subs revenues were flat at $2 billion and licensing revenues fell 12 percent to $860 million.
Filmed entertainment revenues were up 14 percent to $891 million, driven by gains in theatrical revenues thanks to Mission: Impossible—Dead Reckoning Part One and Teenage Mutant Ninja Turtles: Mutant Mayhem. Licensing revenues slipped by 7 percent to $509 million, largely due to prior-year success of Top Gun: Maverick in the digital home entertainment market and lower revenue from studio rentals and production services as a result of labor strikes.