Paramount Global (Nasdaq: PARA) reported a swing to loss in the fiscal 2023 second quarter compared with a similar quarter in fiscal 2022. However, the media giant’s adjusted earnings and revenues surpassed estimates. The stock of Paramount ended Tuesday’s trading session at $16.35, up 1.62% or $0.26 from the prior close.
The New York-based company reported fiscal 2023 second quarter revenues of $7.62 billion, down 2.10% from $7.78 billion in the similar quarter of fiscal 2022.
For the second quarter, which ended June 30, 2023, the streaming and entertainment company recorded a net loss of $299 million, or $0.48 per share, compared with a net profit of $419 million, or $0.62 per share, in the quarter ended June 30, 2022.
Specifically, the Q2 2023 net loss from continuing operations was $372 million, or $0.59 per share. This compares with net earnings of $358 million, or $0.53 per share, in Q2 2022. The net earnings from discontinued operations were $73 million, or $0.11 per share, up from $61 million, or $0.09 per share.
Excluding programming and restructuring charges, and gain from investment, among others, the 2Q23 non-GAAP earnings were $80 million, or $0.10 per share, down from $429 million, or $0.64 per share in 2Q22.
Analysts surveyed by Refinitiv had anticipated Paramount to report flat earnings on revenues of $7.43 billion.
Commenting on the results, Bob Bakish, President & CEO, stated, “In Q2, 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.”
Segment wise:
- TV Media revenues fell by 2% y-o-y to $5.16 billion.
- Direct-to-Consumer revenues were $1.67 billion, up 40% from the past year.
- Filmed Entertainment revenues plunged 39% y-o-y to $831 million.
- Eliminations revenues were $37 million, a decrease of 12% from last year.
At the end of the second quarter, Paramount had roughly 61 million customers for its direct-to-consumer (DTC) service. While Paramount+ and Pluto TV’s global viewing hours increased by 35% on a y-o-y basis, DTC advertising revenue rose by 21% in the same period. Licensing revenue surged 11% year-on-year. Likewise, total affiliate and subscription revenue rose by 12% from last year.
The mixed quarterly results are expected to keep the stock of Paramount range bound in the short term.
The historical price chart indicates that the stock of Paramount is rising after consolidating at 15. The next resistance is anticipated only near 20. Additionally, the stock is trading above its 50-day moving average, while the MACD indicator is showing a positive reading. Therefore, we anticipate the stock of Paramount to remain in an uptrend in the near term.
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