.August 9, 2024 Friday 02:59:40 AM

Paramount Global-B (NASDAQ:PARA) reported a 10.5% revenue decline to $6.81 billion in the quarter ending June 2024, reflecting industry trends. Despite this, earnings per share (EPS) increased to $0.54 from $0.10, showing profitability improvements. Direct-to-Consumer revenues grew by 12.9% to $1.88 billion, indicating consumer interest in streaming content.

The financial breakdown of Paramount reveals growth in EPS but revenue fell short, especially in Filmed Entertainment and TV Media. Direct-to-Consumer revenue growth is positive at 12.9% to $1.88 billion, but challenges remain in subscriber numbers and advertising revenue within that segment.

Paramount Global-B faces operational pressures with a net loss of $554 million and negative EBITDA of $120 million. Cost of revenue is high at $6.15 billion, with a pre-tax income loss of $635 million. The company is implementing cost-cutting measures, including a 15% reduction in the U.S. workforce, ahead of its merger with Skydance Media.

Despite financial challenges, Paramount’s streaming division turned profitable with a $26 million profit for the quarter. This success, driven by subscriber growth and higher pricing on Paramount+, indicates potential for sustained growth. The company’s strategic shift towards a digital-first model aims to enhance profitability and competitiveness in the evolving entertainment landscape.