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Shares of the company, formerly known as ViacomCBS (NASDAQ:PARA), fell over 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, their highest revenue generator, fell 6% compared to last year when CBS’ broadcast of Super Bowl LV brought more viewers and ad sales.
The results also come at a time when Wall Street has raised concerns over the long-term viability of streaming as the pandemic boom ebbs out.
Rival streaming powerhouse Netflix Inc (NASDAQ:NFLX) said it lost 200,00 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 offering live sports on its flagship Paramount+ platform has 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”.
Advertising in Paramount’s Direct-To-Consumer business, that includes its streaming platforms, jumped 59%.
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 dollars.
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.
