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Total revenue rose 5% to $6.92 billion in the third quarter ended Sept. 30, but missed the average estimate of $7.01 billion, according to Refinitiv data.
Shares of the company fell 5% in premarket trading.
A host of factors like high inflation, softening consumer demand across product and services, and geo-political unrest in certain regions have forced companies to pull back on advertising spending.
Paramount said advertising revenue declined 2% in the quarter. Revenue at TV Media, its biggest reporting segment, declined 5% to $4.95 billion, capturing the bulk of weakness in the ads market.
The company’s Paramount+ streaming services added 4.6 million subscribers in the third quarter, compared to the 4.9 million added in the preceding quarter.
Overall, revenue from the direct-to-consumer segment, which also includes Pluto TV, jumped 38% to $1.23 billion.
Fox Corp on Tuesday reported better-than-expected quarterly revenue, with an 8% rise in ad revenue due to higher political advertising revenue on its TV stations.
Comcast Corp (NASDAQ:CMCSA), which reported last week, reported a decline in ad sales and its executives flagged higher costs related to the broadcast of the upcoming World Cup soccer tournament.
