Paramount reported revenue declined 1% to $7.27 billion in total sales in the three months ended March 31. Investors had been anticipating $7.43 billion.
“Paramount’s direct-to-consumer pivot is turning out to be extremely challenging given the heavy $511 million streaming losses in 1Q, which suggest well over $2 billion for the full year and led to a 40% decline in total Ebitda,” said Geetha Ranganathan, a Bloomberg Intelligence analyst.
Bakish said Paramount can “manage through” the writers strike, adding that “we have a lot of content in the can.” He said the strike could be “slightly dilutive” to the company’s revenue but also could boost its cash depending on how long it lasts.
“With the exception of late-night [shows], consumers won’t notice anything for a while,” he said.
—Bloomberg News
