Paramount suffers on streaming and ads
February 16, 2023
Paramount Global disappointed Wall Street estimates on quarterly revenue as a slump in the advertising market hit CBS.
TV advertising revenue fell 7 per cent in the three months to December, despite a lift from political advertising on the back of US mid-term elections in November.
Meanwhile, Paramount+ added a record 9.9 million subscribers, partly resulting from the streaming release of hit sequel movie Top Gun: Maverick (pictured). The company revealed last month it would integrate Showtime with Paramount+ across platforms later this year as it prioritises streaming services. Showtime has suffered from pay-TV cord-cutting.
Total revenue rose 2 per cent to $8.13 billion (€7.63bn) in the quarter but missed expectations. Operating losses in the company’s direct-to-consumer unit, which houses its streaming services including Paramount+ and Pluto TV, rose to $575 million from $502 million.
“Our content and platform strategy is working and, with even more exceptional content coming this year, we expect to return the company to earnings growth in 2024,” said Chief Executive Officer Bob Bakish.