$Paramount Global-B (PARA.US)$ reported quarterly Adj earnings of $0.62 per share which beat the analyst consensus estimate of $0.36 by 72.22 percent. The firm said in its report that the CEO Bob Bakish would step down.
Paramount said George Cheeks (CBS CEO), Chris McCarthy (CEO Showtime/MTV Entertainment Studios and Paramount Media Networks), and Brian Robbins (CEO Paramount Pictures and Nickelodeon) will lead the company from now on.
"Paramount Global includes exceptional assets, and we believe strongly in the company's future value creation potential. I have tremendous confidence in George, Chris, and Brian. They have the ability to develop and execute a new strategic plan and to work together as true partners," Paramount Chair Shari Redstone said.
Paramount Global reported first-quarter revenue Monday of $7.685 billion, up 6% year-over-year. The revenue total missed a Street consensus estimate of $7.732 billion, according to data from Benzinga Pro.
The company reported earnings per share of 62 cents, which beat a Street estimate of 36 cents. The first-quarter financial results from Paramount come as the company continues merger talks with David Ellison's Skydance Media.
Paramount and Skydance have until May 3 to continue exclusive talks on a merger. The period could be extended or Paramount could look to other interested parties after this time.
On Monday, shares of Paramount jumped ahead of earnings with new concessions proposed to Paramount shareholders by Ellison and the Shari Redstone family, which holds a controlling interest in Paramount.
Revenue by segment:
TV Media: $5.23 billion, +1% year-over-year
DTC: $1.88 billion, +24% year-over-year
Filmed Entertainment $601 million, +3% year-over-year
The company's DTC segment saw revenue of streaming platform Paramount+ up 51% year-over-year. Paramount+ added 3.7 million net paid subscribers in the quarter to hit a global total of 71 million paid subscribers.
Advertising revenue for the DTC segment was up 31% year-over-year. The average revenue per user for Paramount+ was up 26% year-over-year.
The company's TV segment was boosted by Super Bowl LVIII in the quarter, which helped boost advertising revenue by 14% year-over-year. The company said the Super Bowl contributed a 23-point benefit to advertising.
Total advertising revenue across segments was up 17% year-over-year.
"The team delivered another quarter of strong operational and financial performance – including significant growth in total company earnings and free cash flow – despite the dynamic environment we continue to operate in," Paramount Chief Financial Officer Naveen Chopra said.
Chopra said Paramount+ saw record engagement and revenue in the quarter.