Paramount's earnings were rough. They swung to a net loss of $299 million compared to a profit last year. Ouch.
The main culprit? Investing tons of cash into streaming content for Paramount+ while revenue dropped in other areas like movies. Double ouch.
But hey, at least streaming subs are way up to 61 million. And adjusted earnings were still slightly in the black at $80 million.
As for debt, it ticked up to $15.8 billion. Not ideal but expected with all the spending on streaming. Credit ratings remain investment grade for now.
The real test is 2024. That's when Paramount says streaming will turn profitable and cash flow positive.
Debt maturities look manageable until 2025. But Paramount needs to show progress on profits and cash flow next year. Otherwise, downgrades could happen.
So in summary - rough results today but folks are betting big on the streaming pivot panning out down the road. Risky strategy but no guts, no glory. We'll see how it shakes out.
I'm long paramount since I made the switch from Netflix. Netflix's show are too cheezy...
[link] [comments] https://www.reddit.com/r/stocks/comments/15kythx/paramount_his_61m_subscriber/
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