Even Tom Cruise can’t get past the costs of creating great content.
Despite solid revenue gains from streaming and from the success of Cruise’s Top Gun sequel in theaters, Paramount Global saw lower profits in its fiscal second quarter as it increased investment in new content while seeing lower advertising and affiliate fees at TV companies. Main.
The owner of broadcast network CBS, cable channel Nickelodeon and movie studio Paramount said operating income fell 33% in the period, to $819 million, compared to more than $1.2 billion in the same period last year. Revenue for the quarter increased 19% to approximately $7.8 billion, compared to approximately $6.6 billion in the prior year.
In a statement, Paramount Global CEO Bob Bakish said the company is focused with interest on making gains in the streaming market. Paramount Global said. “They capture market share in live broadcast, broadcast television, box office and prepaid, all while increasing our penetration into the most important growth market in broadcast media.”
Paramount’s television operations, its largest business, saw revenue grow just 1%, to nearly $5.26 billion, as advertising fell 6% and affiliate and subscription revenue fell 3%.
The illustrated entertainment was more promising. Revenue increased $630 million in the quarter, driven by the releases of “Top Gun: Maverick” and “Sonic the Hedgehog 2.” Unlike its other divisions, Paramount Films has seen an increase in operating income as well.
More is coming…
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