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Paramount misses quarterly revenue estimates on weak ad sales -Breaking

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© Reuters. This illustration was taken January 20, 2022. It shows toy people standing before the Paramount + logo. REUTERS/Dado Ruvic/Illustration

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(Reuters) – Paramount Global said Tuesday that it had added more than 6 million subscribers to its streaming service in the first quarter, but fell short of revenue estimates due to weak sales growth.

Wall Street is concerned about the viability and long-term sustainability of streaming, as the pandemic boom continues to rise. The company’s latest results are a welcome surprise. Netflix Inc. (NASDAQ:), a rival streaming company, reported that it lost 250,000 subscribers during the first quarter.

Its investments in programming that isn’t scripted and live sports on the Paramount+ platform have helped it overcome some of its challenges, while still generating revenue through its cable network networks.

Paramount gained 6.3 million new global streaming subscribers during the first quarter. It now has 62 million total subscribers.

Paramount+ was responsible for subscriber additions. It added 6.8million subscribers during the quarter. Direct-to-consumer subscriptions declined.

Paramount’s net earnings fell to $433 Million, compared to $911M a year ago.

The company’s revenue, previously known as ViacomCBS(NASDAQ:), decreased by about 1% in March to $7.33billion, against analysts’ expectations of $7.38billion, according to IBES data from Refinitiv.

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