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.
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.”
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.
Disney earnings preview: How much magic is left in the kingdom?