Paramount Global stock edged lower on Thursday after the streaming giant posted fourth-quarter earnings that underperformed on both the top and bottom lines.
After falling about 8% in pre-market trading, Paramount had pared its losses by mid-morning, trading down about 3.5% at US$23.69.
For the three months ended December 31, 2022, the company posted revenue of $8.13 billion, compared to $8 billion in the year-ago quarter but falling short of the Street’s expectation of $8.17 billion.
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Adjusted earnings per share came in at $0.08, down from $0.26 in the same quarter in 2021 and far below of the consensus expectation of $0.24.
Subscriber net additions of 9.9 million during the quarter were in line with expectations and a record for the company.
For the full-year 2022, Paramount reported revenue of $30.15 billion, up 5% from $28.58 billion in 2021.
Adjusted earnings per share for the full year came in at $1.71, a decrease of 51% from earnings per share of $3.48 for the previous financial year.
In a statement accompanying the company’s results, Paramount CEO Bob Bakish highlighted the platform’s record 9.9 million subscriber additions during the fourth quarter, which he said was driven by hit content like Top Gun: Maverick, 1923, and Criminal Minds: Evolution.
“In addition, in 2022, Paramount Pictures had six films open at #1 in the US box office and Paramount regained its position as the most-watched media family in linear television,” Bakish said.
“Our content and platform strategy is working and, with even more exceptional content coming this year, we expect to return the company to earnings growth in 2024.”
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