Paramount misses quarterly revenue estimate, but streaming grows

By Eva Mathews and Helen Coster

-Paramount International reported forecast-missing quarterly income on Tuesday that despatched its shares down 6%, however the media large nonetheless added thousands and thousands of streaming subscribers.

Whole income fell about 1% to $7.33 billion within the first quarter, beneath analysts’ estimates of $7.38 billion, in line with IBES knowledge from Refinitiv.

Paramount stated income in its TV media section, its highest income generator, fell 6% in comparison with final yr when CBS‘ broadcast of Tremendous Bowl LV – a championship this yr carried by Comcast Corp-owned NBC – introduced extra viewers and advert income.

The outcomes come at a time when Wall Road has raised considerations over the long-term viability of streaming because the pandemic increase fades, with rival service Netflix Inc shedding 200,000 subscribers within the first quarter.

“We see threat to probably saturated and extremely aggressive streaming-addressable markets in each the U.S. and abroad,” wrote CFRA analyst Kenneth Leon in a word on Tuesday.

Paramount+ noticed progress within the quarter, including 6.8 million subscribers on the again of titles equivalent to “Scream” and “The Misplaced Metropolis”.

Income within the firm’s direct-to-consumer enterprise, which incorporates Paramount+, elevated 82% as a result of a 59% soar in advert gross sales and a 95% improve in subscription revenues.

On a name with buyers, Paramount International Chief Government Officer Bob Bakish stated the corporate will convey Paramount+ to India in 2023 via its three way partnership Viacom18, following Walt Disney Co’s tie-up with Hotstar, a sports activities and regional content material favourite.

The corporate’s chief monetary officer stated on the decision that the Russia-Ukraine battle will reduce direct-to-consumer subscriber progress by 3 million within the second quarter, roughly two-thirds of whom are subscribers to a non-Paramount+ service particular to the Russian market.

Income within the firm’s filmed leisure enterprise fell by about 27% within the quarter as a result of decrease licensing income.

Web earnings attributable to Paramount fell to $433 million, from $911 million a yr earlier.

Excluding objects, the media large earned a revenue of 60 cents per share within the quarter ended March 31, above expectations of 51 cents.