Paramount Global’s investments in its fast-growing but unprofitable streaming unit have peaked a year ahead of the target, the media company said on Thursday, sending its shares 10% higher in extended trading.
The company also beat estimates for third-quarter earnings as the integration of streaming service Paramount+ with Showtime helped its subscription numbers and advertising revenue, while potentially keeping its spending on content in check.
“We now expect DTC losses in 2023 will be lower than in 2022 – meaning streaming investment peaked ahead of plan,” CEO Bob Bakish said.
The upbeat quarterly results and company comments come a day after streaming device maker Roku signaled a rebound in the advertising market, lifting its shares and also those of Warner Bros Discovery and Paramount in regular trading on Thursday.
Warner Bros rose another 3.5%, while Fox Corp added 2% in extended trading. Reuters