said it would it cut its dividend as continued investment in streaming weighed on the company while it saw declines in its traditional revenue from advertising and cable distribution.
The owner of CBS, Nickelodeon and the Paramount movie studio said its first-quarter loss came to nearly $1.23 billion, or $1.81 a share, compared with a profit of $775 million, or 58 cents a share, in the year-earlier quarter. Revenue was essentially flat, down 1%, on shortfalls in its TV media and filmed entertainment units, while its streaming operations saw revenue rise 39%.
“We are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment,” saidLike other media conglomerates, Paramount is grappling with intense pressure to ramp up streaming operations, even as the economics of its traditional businesses are in decline. The company boasts of steady consumer interest in Paramount+ and other streaming operations like Pluto, but its TV networks and movie studio remain its biggest contributors to cash flow.
Paramount Global reported a loss of $511 million in its direct-to-consumer operations, compared to a loss of $456 million in the year-earlier quarter — a widening of 12%. The company said Paramount+ added 4.1 million subscribers in the quarter, coming to a total of 60 million overall. The company’s overall revenue came to $7.3 billion, missing Wall Street estimates. Revenue in its TV operations fell 8%, due to shortfalls in advertising and affiliate fees, while revenue from filmed entertainment was off 6% due to timing of releases.