Live Nation's huge Q3, Paramount streaming losses improve
Entertainment giants Paramount Global and Live Nation both reported quarterly results after the market close on Thursday.
Paramount (PARA) reported third quarter revenue of $7.13 billion, about in line with estimates, while adjusted earnings of $0.30 per share topped estimates of $0.10. The company reported a direct-to-consumer loss of $238 million, which was narrower than Street expectations of $438 million.
Live Nation (LYV), Ticketmaster's parent company, reported its "strongest quarter ever and are on pace for a record 2023," according to CEO Michael Rapino. The live entertainment company reported third quarter revenue rose 32% to $8.2 billion and operating income that was up 22% to $619 million.
Yahoo Finance Senior Reporter Alexandra Canal breaks down the details of both quarterly reports.
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Video Transcript
AKIKO FUJITA: We are looking at two entertainment stocks after-hours, Paramount Global and Live Nation. Allie Canal here with the details. Both of those stocks getting a pop in after-hours trade, Allie.
ALEXANDRA CANAL: Yes. And I'm going to start with Paramount. That's the more significant of the two. More than 10% higher today on the heels of those earnings. Now a lot of positives in this report. But the most notable is the forecast that 2023 streaming losses will be lower than 2022. This comes as the company reported a direct to consumer loss of $238 million. That was a narrower loss than analysts had expected and also lower compared to the year ago period.
Bob Bakish saying in the release that streaming investment peaked ahead of plans, with DTC revenue aided by subscriber growth, as well as price increases for Paramount Plus. Take a look at total Paramount Plus subscribers, they've now reached more than 63 million subs, with the streamer adding 2.7 million subs in the quarter ahead of estimates. We did see a slight miss on the revenue side, but still stronger compared to the year ago period. One area of concern does remain the TV ad market with linear ad revenue, slumping 14% year over year.
But switching gears to Live Nation, this stock up about 4% right now on the heels of blockbuster earnings. Live Nation, of course, is the parent company of Ticketmaster. They reported their strongest quarter ever, revealing they're on pace for a record 2023. Thanks to those concerts we saw this summer from Taylor Swift and Beyoncé. We've seen a lot of pent-up demand for live events coupled with higher ticket prices.
That helped boost revenue in the quarter. We've heard from a lot of analysts that conflation is here to stay, as more consumers want to spend their money on those in-person events. We will be receiving the call any minute now. And I'm curious to see what else they have to say when it comes to how sustainable these concerts are moving forward and how sustainable that demand is. But two companies reporting very solid results today.
JOSH LIPTON: All right. Thank you so much, Allie. Appreciate it.
