Paramount Global (NASDAQ: PARA) stock rose about 3% in intraday trading Monday as President and CEO Bob Bakish resigned. The company also announced its first-quarter financial results.
Paramount Global (PARA) made headlines on Monday with the announcement of CEO Bob Bakish stepping down from his role at the studio.
Paramount named a trio of executives to lead the company forward: George Cheeks, CEO of CBS; Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, CEO of Paramount Pictures and Nickelodeon.
Paramount Chair Shari Redstone expressed confidence in the newly appointed leaders, emphasizing their collective ability to develop and execute a new strategic vision for the company.
She said,
“Paramount Global includes exceptional assets and we believe strongly in the future value creation potential of the company. I have tremendous confidence in George, Chris, and Brian. They have both the ability to develop and execute a new strategic plan and to work together as true partners.”
This move comes as Paramount continues merger talks with David Ellison’s Skydance Media. Paramount and Skydance have until May 3 to continue exclusive negotiations on a potential merger, with the possibility of extension or exploration of other interested parties.
Paramount Q1 Earnings Snapshot
Simultaneously, Paramount Global (NASDAQ: PARA) released its first-quarter earnings report, revealing revenue of $7.685 billion, marking a 6% year-over-year increase. However, this revenue total fell slightly short of the Street’s consensus estimate of $7.732 billion. On the earnings front, Paramount reported earnings per share of 62 cents, surpassing the Street estimate of 36 cents.
Revenue By Segments: The TV Media segment generated $5.23 billion, up 1% from last year. In comparison, the Direct-to-Consumer (DTC) segment saw revenue of $1.88 billion, reflecting a 24% year-over-year growth. The Filmed Entertainment segment reported revenue of $601 million, up 3% year-over-year.
Paramount’s DTC segment saw remarkable growth, with streaming platform Paramount+ witnessing a 51% year-over-year revenue increase. Paramount+ added 3.7 million net paid subscribers in the quarter, reaching a global total of 71 million paid subscribers. Advertising revenue for the DTC segment also experienced a significant uptick, rising by 31% year-over-year, while the average revenue per user for Paramount+ surged by 26% year-over-year.
The TV segment received a boost from Super Bowl LVIII, contributing to a 14% YoY increase in advertising revenue. Total advertising revenue across segments saw a notable 17% year-over-year growth.
Naveen Chopra, CFO of Paramount, commended the team for delivering another quarter of strong operational and financial performance, highlighting significant growth in total company earnings and free cash flow amidst a dynamic operating environment. Chopra also noted record engagement and revenue for Paramount+ in the quarter.
Paramount Global (NASDAQ: PARA) Stock Reaction
PARA stock jumped 2.85% to close at $12.25 on Monday. Its value has dropped by 1.05% this week. Trading activity has witnessed 26,183,323 (26.18 million) shares changing hands, well above the average daily volume of 20.55 million.
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