Paramount Global increased direct-to-consumer revenue by 56% in the second quarter, due largely to its Paramount+ streaming platform, which added 3.7 million subscribers, now totaling 43 million.
D2C revenue totaled $1.2 billion during the quarter, with overall D2C subscribers rising to 64 million, including the removal of 3.9 million subscribers in Russia.
D2C expenses, however, nearly doubled, rising 80% to $1.6 billion. Adjusted cash flow fell to a negative $445 million, widening from $143 million the same quarter a year ago.
D2C advertising revenues rose 25% to $363 million, including a 74%.
Overall subscription revenue soared 74% to $830 million.
Much of the growth in ad revenue came from higher impressions at Paramount+ and Pluto TV.
Pluto TV, Paramount's free, ad-supported TV provider, rose to nearly 70 million monthly active U.S. users.
The company “took market share in streaming,” CEO Bob Bakish stated in its earnings release, but declined to provide details.
Paramount's legacy TV/media businesses, however, continue to languish, rising only 1% to $5.3 billion.
While there was higher revenue from content sales (up 27% to $1 billion), there was also lower advertising and affiliate revenues.
Advertising sales fell 6% to $2.2 billion due to lower linear TV audience impressions.
Still, Paramount says 11 of 19 cable TV networks grew their share, including Comedy Central and Nickelodeon, with the latter getting to its highest year-over-year share growth since the second quarter 2017.
“Top Gun: Maverick '' helped to more than double filmed entertainment revenue, rising 126% to $1.4 billion.
The film's total worldwide box office take now stands at $1.38 billion, making it Paramount’s most successful domestic movie ever, and one of the top ten best U.S. films of all time.
Overall, company-wide revenue was up 19% to $7.8 billion, with operating income down 33% to $819 million.
Paramount Global stock was virtually flat in early Thursday morning trading, up 0.13% to $25.07 a share.