Despite falling short of revenue expectations, Paramount reports a surprise profit and impressive streaming results.

• Despite missing revenue expectations for the fourth quarter, Paramount Global reported a surprise quarterly profit and saw strong results from its streaming platform Paramount+.
• During the period, Paramount+ gained 4.1 million subscribers, reaching a total of 67.5 million, and experienced a 69% increase in revenue growth year over year.
• Recently, Paramount has been considering selling all or parts of its business.

Despite missing revenue expectations for the fourth quarter on Wednesday, Paramount+ posted a surprise quarterly profit and strong results.

Wall Street estimates from LSEG, formerly known as Refinitiv, show how Paramount performed in the fourth quarter.

• Earnings per share: 4 cents vs. an expected loss of 1 cent
• Revenue: $7.64 billion vs. $7.85 billion expected

In the last three months of 2023, Paramount reported a profit of $514 million, or 77 cents per share, compared to $21 million, or 1 cent per share, in the previous year. After adjusting for one-time items, earnings per share were 4 cents for the period.

Despite a 6% year-over-year revenue decline, Paramount, which houses brands such as CBS, Showtime, BET, Nickelodeon, and its namesake movie studio, made significant progress in its streaming segment.

During the period, Paramount+, the company's flagship streaming service, gained 4.1 million subscribers, reaching a total of 67.5 million subscribers. Additionally, the service recorded a 69% increase in revenue year over year. The company anticipates achieving profitability for Paramount+ by 2025, as stated on Wednesday.

In the fourth quarter, subscription revenue increased by 43%, with price increases contributing to the growth, and the direct-to-consumer segment experienced a 34% revenue increase.

During the fourth quarter, Paramount+ and Pluto TV experienced a 27% increase in global viewing hours.

"CEO Bob Bakish stated in a press release that the company remains focused on maximizing the return on content investments and scaling streaming while transforming the cost base of the business. He expressed excitement about the early momentum the company has experienced across all platforms in 2024, demonstrating the effectiveness of their strategy and assets."

Recently, Paramount has been considering selling all or parts of its business as the media industry undergoes rapid changes. Despite its struggles, Paramount's shares have fallen more than 50% over the past two years without a clear growth story.

CNBC's Alex Sherman reported Tuesday that Paramount had been in preliminary talks to be acquired, but those discussions have since stopped.

Earlier this month, Paramount announced about 800 layoffs, despite reaching record viewership numbers for this year's Super Bowl the day before.

The company's TV media revenue decreased by 12% year over year, while advertising revenue fell by 15% due to global advertising market softness and a 5% impact from lower political advertising, as stated in the earnings release.

Lower licensing revenue caused a 31% decline in Paramount's filmed entertainment sector revenue year over year.

This story is developing. Please check back for updates.