09:51 AM EST, 11/08/2024 (MT Newswires) -- Paramount Global's ( PARAA ) third-quarter earnings unexpectedly rose year over year while its revenue fell more than Wall Street had estimated, with the company's streaming service adding 3.5 million subscribers.

Adjusted per-share earnings rose to $0.49 during the three months ended Sept. 30 from $0.30 a year earlier, ahead of the Capital IQ-polled consensus of $0.24. The media, streaming and entertainment company's revenue fell 6% year over year to $6.73 billion, missing the Street's view of $6.97 billion.

Paramount's TV media revenue decreased 6% to about $4.3 billion amid declines across affiliate and subscription, licensing and advertising. Sales of its filmed entertainment business slid 34% to $590 million as theatrical revenue plunged 71%.

Direct-to-consumer sales rose 10% year over year to $1.86 billion, driven by gains in advertising and subscription, Paramount said. The Paramount+ subscription service added 3.5 million subscribers during the third quarter to bring its total membership base to 72 million, compared with the 70.8 million consensus estimate on Visible Alpha.

Advertising during the third quarter benefitted from "record" political spending as well as the return of National Football League and college football, co-Chief Executive George Cheeks told analysts during a conference call, according to a Capital IQ transcript.

"Digital ad growth remains strong showing notable increase in demand year-over-year, which reflects our value position from a price, quality and scale standpoint and will continue to drive growth," Cheeks said on the call.

Paramount expects its planned merger with production company Skydance Media to complete in the first half of 2025.

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