PARAMOUNT Global’s quarterly revenue and profit beat Wall Street estimates on Thursday, helped by originals and post-theatrical releases at its direct-to-consumer business, which includes streaming.
On a post-earnings conference call, the company said it would look to reduce its non-content costs in the face of broad economic uncertainty caused by an escalating US-China trade war.
“We’re off to a good start for 2025 and important to note, we have not seen a meaningful impact due to the dynamic macro environment,” co-CEO Chris McCarthy said on a post-earnings call.
“That said, looking forward, given the uncertainty, we are prioritizing key investments while taking incremental steps to streamline non-content expenses.”
Morgan Stanley analysts had said on Tuesday they expect additional uncertainty associated with United States President Donald Trump’s announcement of a 100-percent tariff on movies produced outside the country.
Paramount said it still expects its $8 billion merger with Skydance Media to close in the first half of this year.
The company reported first-quarter revenue of $7.19 billion, driven by growth in its direct-to-consumer and filmed entertainment businesses, beating analysts’ estimate of $7.09 billion.
Quarterly revenue from the company’s direct-to-consumer business, which includes streaming platforms Paramount+, BET+ and PlutoTV, rose 9 percent to $2.04 billion.
Sales at its filmed entertainment segment increased 4 percent to $627 million.
Paramount and Skydance’s “Mission Impossible The Final Reckoning,” which may mark Tom Cruise’s last appearance in the long-running franchise, is expected to boost studio revenue in the second quarter.
Paramount+, the company’s flagship streaming platform, added 1.5 million subscribers during the quarter, below the estimate of 1.66 million new subscribers, according to data from Visible Alpha.
It posted an adjusted profit of 29 cents per share in the first quarter, ahead of an estimate of 25 cents apiece, according to data compiled by LSEG.