Paramount Global Swings to Q1 Loss On Streaming Investment
variety.comBrian Steinberg Senior TV Editor Paramount Global 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,” said Bob Bakish, the company’s chairman and CEO, in a statement.
Like 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.
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