Paramount Global reported first-quarter results that topped analyst estimates, powered by a significant swing to profitability in its direct-to-consumer streaming business. The stock rose 3 percent in after-hours trading.
The media company, which is navigating merger talks with Skydance Media, reported revenue and profit that exceeded Wall Street forecasts, signaling that its strategic focus on streaming is yielding financial returns.
The direct-to-consumer segment, which includes Paramount+, was the quarter's highlight. The unit generated an adjusted EBITDA of $251 million, a sharp reversal from the $4 million loss recorded in the same period last year. Streaming revenue grew 11 percent to $2.4 billion.
Paramount+ gained 700,000 net new subscribers during the quarter, bringing its global total to 79.6 million. The growth came even after the platform raised prices, indicating solid consumer demand for its content. Overall, Paramount's net earnings for the quarter climbed to $168 million from $152 million a year earlier.
The swing to streaming profitability is a key validation of the company's strategy, strengthening its position as it continues to explore a potential merger with Skydance. Investors will be closely watching for further details on the merger talks, which remain the primary driver of the company's valuation.
This article is for informational purposes only and does not constitute investment advice.
