DTVE: the week in view — Tough times for Paramount
Digital TV Europe
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Those of us who live in the UK and follow politics a few years ago became familiar with the wonders of “having your cake and eating it” – the alchemical achievement of continuing to possess something while consuming it.
We’ll get back to cake-eating shortly. First, the news. Paramount week saw its share price plummet after weaker-than-anticipated first quarter results that also saw it cut its dividend from 24 cents to only five.
Revenue missed expectations due largely to weakness in the ad market and lower-than-expected revenue from the studio business.
Operating income before depreciation and amortisation (OIBDA) fell by significantly greater than expected, and free cash-flow loss widened.
CEO Robert M. Bakish glossed over the results as the outcome of “navigating a challenging and uncertain macroeconomic environment”.
So far, so bad. The bright spot in an otherwise bleak earnings announcement was the Paramount+ #streaming business. Streaming revenue at US$1.51 billion (which also includes the advertising-led business of Pluto TV ) was highly respectable, and the OIBDA loss from streaming – US$511 million – was less than anticipated.
Also this week