Paramount Global shares slide as results miss and TV revenue falls

by | Nov 2, 2022 | Business

Tom Cruise in “Top Gun: Maverick”Source: ParamountParamount Global on Wednesday reported $6.92 billion in revenue for its third quarter, an increase of 5% year-over-year. Yet the company’s results missed expectations as it suffered from cord cutting and a drop in advertising revenue.Here’s what the company reported compared with analysts’ expectations, according to Refinitiv:Adjusted EPS: 39 cents, vs 43 cents expectedRevenue: $6.92 billion, vs $7.01 billion expectedParamount said revenue for its TV media segment – which includes broadcast network CBS and cable-TV channels such as MTV, Nickelodeon and premium network Showtime – was down 5% to about $4.9 billion compared to the previous quarter as pay-TV subscriber numbers declined.Paramount shares were down about 8% in premarket trading.Advertising revenue for the segment also dropped, a sign that macroeconomic headwinds are beginning to hit. Paramount said advertising revenue for its TV networks was down 3% to about $1.9 billion.Over the summer, Paramount warned that it began to feel a slowdown in the advertising market.The company noted it also restructured some of its international affiliate TV agreements during the quarter, which shifted revenue from pay-TV services to streaming.The company’s direct-to-consumer streaming segment performed better, however. Paramount+, the company’s answer to premium subscription services like Netflix and Disney+, added 4.6 million subscribers, bringing its total to 46 million customers. Paramount+ also lost 1.9 million subscribers during the quarter as SkyShowtime, its joint venture with Comcast in Europe, launched in the Nordics and replaced Paramount+.Paramount+’s subscriber growth was driven by sports, particularly the NFL and international soccer, as well as the launch of its partnership with Walmart+. The company also announced Wednesday that its blockbuster “Top Gun: Maverick” would hit Paramount+ by the end of the year.Meanwhile Pluto TV, the company’s free, ad-supported streaming service …

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