Paramount Global shares slide as results miss and TV revenue falls

Paramount Global connected Wednesday reported $6.92 cardinal successful gross for its 3rd quarter, an summation of 5% year-over-year. Yet the company's results missed expectations arsenic it suffered from cord cutting and a driblet successful advertizing revenue.

Here's what the institution reported compared with analysts' expectations, according to Refinitiv:

• Adjusted EPS: 39 cents, vs 43 cents expected
• Revenue: $6.92 billion, vs $7.01 cardinal expected

Paramount said gross for its TV media conception – which includes broadcast web CBS and cable-TV channels specified arsenic MTV, Nickelodeon and premium web Showtime – was down 5% to astir $4.9 cardinal compared to the erstwhile 4th arsenic pay-TV subscriber numbers declined.

Paramount shares were down astir 8% successful premarket trading.

Advertising gross for the conception besides dropped, a motion that macroeconomic headwinds are opening to hit. Paramount said advertizing gross for its TV networks was down 3% to astir $1.9 billion.

Over the summer, Paramount warned that it began to consciousness a slowdown successful the advertizing market.

The institution noted it besides restructured immoderate of its planetary affiliate TV agreements during the quarter, which shifted gross from pay-TV services to streaming.

The company's direct-to-consumer streaming conception performed better, however. Paramount+, the company's reply to premium subscription services similar Netflix and Disney+, added 4.6 cardinal subscribers, bringing its full to 46 cardinal customers. Paramount+ besides mislaid 1.9 cardinal subscribers during the 4th arsenic SkyShowtime, its associated task with Comcast successful Europe, launched successful the Nordics and replaced Paramount+.

Paramount+'s subscriber maturation was driven by sports, peculiarly the NFL and planetary soccer, arsenic good arsenic the motorboat of its concern with Walmart+. The institution besides announced Wednesday that its blockbuster "Top Gun: Maverick" would deed Paramount+ by the extremity of the year.

Meanwhile Pluto TV, the company's free, ad-supported streaming service, reached 72 cardinal monthly progressive users globally and grew its full viewing hours by treble digits, the institution said. On Tuesday, Fox Corp. reported that its Pluto competitor, Tubi, was a agleam spot for the company, with gross and advertizing increasing importantly for the service.

Disclosure: CNBC is owned by Comcast.