(Reuters) -Paramount Global beat Wall Street estimates for first-quarter revenue and profit on Thursday, driven by a growth in its direct-to-consumer and filmed entertainment businesses.
The company’s direct-to-consumer business, which includes streaming platforms Paramount+, BET and PlutoTV, was strengthened by its originals and post-theatrical releases such as “Gladiator II”.
The segment posted revenue of $2.04 billion, up 9% for the first quarter ended March 31.
Sales for its filmed entertainment segment increased 4% 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.
Skydance Media and Paramount’s $8 billion merger deadline was automatically extended by 90 days from April 7, under the terms of the companies’ agreement. The deal is expected to close in the first half of this year.
The company reported first-quarter revenue of $7.19 billion, beating analysts’ estimate of $7.09 billion, according to data compiled by LSEG.
It posted an adjusted profit of 29 cents per share, ahead of an estimate of 25 cents apiece.
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.
(Reporting by Juby Babu in Mexico City; Editing by Leroy Leo)
