Paramount Global delivered its first quarter of streaming profitability after announcing plans to merge with Skydance Media.
) on Thursday reported profits within its streaming division for the first time while its linear TV business reported a sharper slowdown than expected as the company prepares for its
"We will continue to aggressively execute on our strategic plan which focuses on transforming streaming to accelerate profitability, streamlining our organization — including at least $500 million in annualized cost savings — and improving the balance sheet by growing free cash flow and optimizing our asset mix."Shares moved about 1% higher as investors digested the results. Coming into the report, Paramount stock was down roughly 30% this year.
Despite turning a profit in its streaming segment, Paramount+ shed 2.8 million in the quarter to 68 million, "principally reflecting the planned exit from a hard bungle agreement in South Korea." But global average revenue per user, or ARPU, expanded by 26% year over year in the quarter. That helped boost revenue at Paramount+ by 46% compared to the prior year.
Skydance CEO David Ellison will become chairman and CEO of the combined company, while former NBCUniversal executive Jeff Shell, who was"We love the creative engine of this company. But obviously, a big chunk of the company is in the linear world and we know linear is challenged and declining," Shell said. "I think a lot of us in the business know we've got to run these businesses in a different way as they decline.
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