PARAMOUNT Global, the parent of CBS, MTV and other networks, said fourth-quarter sales fell 6 per cent to US$7.64 billion, the result of shrinking advertising on traditional TV channels.
While revenue came in below analysts’ expectations of US$7.89 billion, the company posted better-than-expected earnings of four US cents a share excluding some items, according to a statement on Wednesday (Feb 28). Wall Street was forecasting a break-even quarter.
Subscribers to the Paramount+ streaming service rose to 67.5 million, increasing 4.1 million from the prior quarter and beating Wall Street estimates. The New York media giant registered a loss of US$490 million in its streaming business, beating projections. Revenue grew to US$1.9 billion.
Viewers are cancelling cable TV subscriptions and watching more video on demand, something that’s challenging traditional media companies as they struggle to wring profits from their own streaming services.
Against that backdrop, the family that controls Paramount has been weighing offers for the company.
Advertising at Paramount’s traditional TV business fell 15 per cent, leading to a 12 per cent decline in sales and operating income for the unit that generates nearly all of its profit. The business earned US$1.1 billion on sales of US$5.2 billion in the quarter.
Paramount’s namesake film studio struggled as well, with sales down 31 per cent to US$647 million and profit tumbling 72 per cent to US$24 million. The company cited lower home entertainment revenue, and the business impact of last year’s strikes by actors and writers on studio rentals. BLOOMBERG
