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(Reuters) – Paramount Global said on Tuesday it added more than 6 million streaming subscribers in the first quarter but missed revenue estimates, hurt by weaker TV advertising sales in a period without the Super Bowl broadcast.
Shares of the company, formerly known as ViacomCBS (NASDAQ:PARA), fell more than 4% in pre-market trading.
Total revenue fell about 1% to $7.33 billion in the first quarter, below analysts’ estimates of $7.38 billion, according to IBES data from Refinitiv.
Paramount said revenue in its TV media segment, its highest revenue generator, fell 6% compared to last year when CBS’ broadcast of Super Bowl LV – a championship this year carried by Comcast-owned NBC – brought more viewers and ad revenue.
The results also come at a time when Wall Street has raised concerns over the long-term viability of streaming as the pandemic boom fades.
Rival streaming powerhouse Netflix Inc (NASDAQ:NFLX) said it lost 200,000 subscribers in the first quarter and expects to lose a further 2 million in the second quarter.
Still, Paramount’s investments in unscripted programming and live sports on its flagship Paramount+ platform have helped it weather some of these challenges.
Paramount+ added 6.8 million subscribers in the quarter, on the back of titles such as “Scream” and “The Lost City”.
Revenue in the company’s direct-to-consumer business, which includes Paramount+, increased 82% due to a 59% jump in ad sales and a 95% increase in subscription revenues.
However, the company has a long road to recovery from pandemic lows in its filmed entertainment business, where revenue declined about 27% owing to lower licensing revenue.
Net earnings attributable to Paramount fell to $433 million, from $911 million a year earlier.
Excluding items, the media giant earned a profit of 60 cents per share in the quarter ended March 31, above expectations of 51 cents.
