Paramount: profitability curtailed by investments
(CercleFinance.com) - Paramount has reported a sharp drop in quarterly profit on Thursday, due to the heavy investments it is currently making in its international development and content addition.
This morning the US media group reported Q4 operating profit of 182 million dollars, a fraction profit of over 2.6 billion dollars in Q4 2021 (-93%).
If its video-on-demand service attracted 9.9 million new subscribers over the quarter, a record figure, although this dynamism has not offset the decline in the results of its television branch (CBS, Nickelodeon, MTV, ...) against the backdrop of declining advertising revenues.
Revenues increased by 2% to 8.31 billion dollars.
Given the success of its video-on-demand platform and the "exceptional" content it plans to offer this year after major investments, Paramount expects to return to earnings growth from 2024.
The share price was down about 5% in early trading on Thursday in New York.
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