Powered by the May release of blockbuster “Top Gun: Maverick”, Paramount beat Wall Street expectations for quarterly revenue and profit on Thursday.
The sequel to the 1986 action flick started by Tom Cruise became the highest-grossing movie of the year after breaking the $1 billion barrier in global box office sales, beating Disney’s Marvel “Doctor Strange in the Multiverse of Madness”.
According to Refinitiv, Paramount earned 64 cents per share on revenue of $7.78 billion, while analysts expected 61 cents profit on revenue of $7.57 billion.
Despite streaming subscriber growth slowed for Paramount, Top Gun gave a breath of fresh air to the studio struggling since the pandemic outbreak.
In the second quarter ended June, Paramount+, the company’s flagship streaming platform, added 4.9 million subscribers, compared to 6.8 million in the preceding quarter.
According to analysts the company is facing pressure as bigger streaming rivals Netflix and Walt Disney’s Disney+ are pushing harder into advertising.
“Though we don’t have any imminent price changes, they will happen in the future,” Paramount Chief Financial Officer Naveen Chopra said.