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8 months ago
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Paramount Global‘s earnings in the fourth quarter edged Wall Street forecasts, but a double-digit slide in advertising dragged down total revenue by 6%.
Revenue came in at $7.6 billion, while earnings came in at 4 cents a share. Analysts had expected a loss of 1 cent, but revenue of $7.84 billion.
Advertising, which faced tough comparisons with the midterm-election-boosted 2022 frame, declined 15% over the year-earlier period to $2.28 billion. The dual strikes of 2023 also affected the pipeline at CBS and other networks, further squeezing ad sales.
The company said it is forecasting that its domestic streaming business will turn profitable by 2025. It also said 2022 was the peak of streaming losses, confirming management commentary in recent months.
The quarterly financials are landing during a time of great uncertainty at Paramount. Formed from the 2019 merger of CBS and Viacom, the company has held talks recently with a number of entities interested in acquiring some or all of its assets. None of the discussions have progressed to an advanced stage, but investors have raised questions about the company’s vulnerability to declines in linear TV viewing and advertising, as well as its ability to compete in the cash-intensive streaming derby. Shares in Paramount ended Wednesday trading at around $11. They are down more than 20% in 2024 to date and are worth a fraction of what they were when the merger closed.
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