Paramount’s stock roars higher after earnings, planned sale of Simon & Schuster


Paramount Global shares were popping in Monday’s after-hours action after the media giant topped expectations with its latest quarterly financials.

The company posted a second-quarter net loss of $299 million, or 48 cents a share, whereas it posted net income of $419 million, or 62 cents a share, in the year-earlier period.

Paramount PARA, +2.94% posted 10 cents in adjusted diluted earnings from continuing operations, compared with 64 cents a year before. Analysts tracked by FactSet were modeling breakeven performance on adjusted earnings.

“In [the second quarter], we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024,” Chief Executive Bob Bakish said in a shareholder presentation.

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Shares of the media giant were rallying 5% in Monday’s extended session.

Revenue slipped to $7.62 billion from $7.80 billion, while analysts were expecting $7.44 billion. Revenue for the Paramount+ streaming service was up 47%, while total direct-to-consumer advertising revenue grew by 21%.

“And despite the environment, TV Media continued to contribute significant earnings,” Bakish said. “As we look forward, we will continue to be guided by our content-first approach and seek to maximize its value across platforms and revenue streams, while also operating with the utmost efficiency through this year of peak streaming investment.”

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The direct-to-consumer business lost $424 million in the second quarter on the basis of adjusted operating income before depreciation and amortization.

Separately, Paramount announced on Monday that KKR will purchase its Simon & Schuster publishing business for $1.62 billion in an all-cash deal.

“The proceeds will give Paramount additional financial flexibility and greater ability to create long-term value for shareholders, while also delevering our balance sheet,” Bakish said in a release.

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