Zhitong Finance APP learned that Paramount Universal (PARA.US) announced its third-quarter financial report before the market opens on Friday, Eastern Time. Quarterly revenue fell short of expectations as box office revenue was not a big success and a decline in the overlay cable

Zhitong Finance App learned that Paramount Universal (para.us) announced its third-quarter financial report before the market opens on Friday, Eastern Time. Quarterly revenue fell short of expectations as box office revenue was not a big success and a decline in cable television offset better-than-expected subscriber growth for streaming services following the return of NFL content. Data show that Paramount Universal's Q3 revenue was US$6.731 billion, lower than the expected US$6.95 billion, and non-GAAP earnings per share were US$0.49, exceeding the market consensus of US$0.24.

Financial reports showed that third-quarter revenue from the television media business, which includes CBS and MTV, fell 6% due to lower advertiser spending, declining subscriber numbers and a lack of paid boxing events. Customers have been canceling cable TV subscriptions in favor of streaming platforms, eroding the lucrative profit engines of traditional media companies even as they continue to work to improve margins in their streaming businesses.

The streaming business reported adjusted operating income of $49 million in the quarter, compared with a loss of $238 million in the same period last year, marking the company's second consecutive quarter of profitability. Analysts had expected the company to lose $160.1 million, according to data compiled by lseg.

Its streaming unit benefited in the quarter from price increases on flagship streaming platform Paramount+, sports content such as the National Football League (NFL) and the second season of crime drama "Tulsa Kings."

The company's paramount+ added 3.5 million users in the quarter, after losing 2.8 million users in the previous quarter, and now has a total of 72 million subscribers. According to visible alpha data, the number of new users was higher than expected at 2.46 million.

In addition, its film entertainment business revenue fell by 34%, affected by the reduction in the number of film releases and the decline in home entertainment business revenue. In the third quarter, the animated film "Transformers 1" was released in major theaters and grossed US$127 million at the global box office.

Paramount and Skydance Media agreed in July this year to merge and form a new entity to enhance the media giant's content creation capabilities and expand its digital platforms including Paramount+ and PlutoTV. Paramount said on Friday that the deal, which is expected to close in the first half of next year, is still subject to regulatory approvals and customary closing conditions. Until then, Paramount will continue to operate as normal.

Meanwhile, Paramount co-chief executives Brian Robbins, George Cheeks and Chris McCarthy are planning to cut 15% of their U.S. workforce , which employs approximately 2,000 people, and aims to save $500 million in annual operating costs. The layoffs will focus on cutting redundant functions and streamlining the company's teams, with areas including marketing and communications, finance, legal and technology.