Paramount misses quarterly revenue estimate, but streaming grows

Could 3 (Reuters) – Paramount World (PARA.O) reported forecast-missing quarterly income on Tuesday that despatched its shares down 6%, however the media big nonetheless added hundreds of 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 12 months when CBS’ broadcast of Tremendous Bowl LV – a championship this 12 months carried by Comcast Corp (CMCSA.O)-owned NBC – introduced extra viewers and advert income.

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The outcomes come at a time when Wall Avenue has raised issues over the long-term viability of streaming because the pandemic increase fades, with rival service Netflix Inc (NFLX.O) 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 corresponding to “Scream” and “The Misplaced Metropolis”.

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

On a name with traders, Paramount World Chief Govt Officer Bob Bakish stated the corporate will convey Paramount+ to India in 2023 by means of its three way partnership Viacom18, following Walt Disney Co’s (DIS.N) 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 minimize 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 attributable to decrease licensing income.

Web earnings attributable to Paramount fell to $433 million, from $911 million a 12 months earlier.

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

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Reporting by Eva Mathews in Bengaluru and Helen Coster in New York; Enhancing by Krishna Chandra Eluri and Jan Harvey

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