Paramount shares fall as CEO lowers fourth-quarter ad revenue forecast

Shares of Paramount Global fell Tuesday aft CEO Robert Bakish warned that fourth-quarter advertizing gross would beryllium little than the company's sluggish third-quarter figures.

"The existent marketplace is challenging and we're successful it each day," Bakish said during the UBS Global TMT Conference successful New York. "That situation is some connected the linear broadside and the integer side. We had looked for immoderate betterment successful immoderate sectors, but we haven't seen that."

Bakish has warned successful caller quarterly net calls that the worsening advertizing marketplace has been weighing connected Paramount's business. On Tuesday helium revised the company's erstwhile forecast to down "a spot below" 3rd quarter, alternatively than in-line with anterior results. Paramount's advertisement gross declined 2% successful the 3rd quarter.

In summation to its broadcast web and portfolio of cable-TV channels, Paramount's streaming work Paramount+ has an ad-supported tier. The institution besides owns the free, ad-supported streamer Pluto, which Bakish said was besides feeling the symptom of the pugnacious advertisement market.

Paramount isn't the lone media institution to accidental the advertisement marketplace is rough. NBCUniversal CEO Jeff Shell said astatine the UBS league Monday that it has steadily worsened implicit the past six to 9 months. Still, Shell said his institution volition inactive spot fourth-quarter advertisement gross up mid-single digits compared to past year, noting that Peacock and the runoff predetermination run successful Georgia gave NBCUniversal a boost.

Paramount's Bakish is optimistic that existent advertizing trends volition reverse, however.

"A challenging advertizing marketplace is cyclical," Bakish noted. "We managed done a fig of these cycles, arsenic precocious arsenic the opening of the decade. This excessively is simply a rhythm and volition turn. And erstwhile it does turn, you truly spot the powerfulness of the portfolio of assets we have."

Programing note: Paramount CEO Robert Bakish volition look connected CNBC's "Squawk connected the Street" connected Wednesday astatine 10 a.m. ET.

Disclosure: Comcast is the genitor institution of NBCUniversal and CNBC.