Why did PARAA's Q4 earnings fall short of forecasts?

Paramount Global's (PARAA) Q4 earnings fell short of forecasts due to several key factors:

1. **Decline in Cable TV Units**: The continued decline in Paramount's cable TV unit significantly impacted revenue. Despite higher subscriber growth in its Paramount+ streaming platform, the decline in cable TV audiences eroded a crucial profit source. This decline led to a 6% decrease in revenue from TV media, which includes CBS and MTV, as advertisers and subscribers shifted to streaming platforms.
2. **Studio and Cable Business Weakness**: The weakness in the studio and cable businesses further contributed to the revenue shortfall. The filmed entertainment division faced a 34% revenue drop, primarily due to fewer theatrical releases and lower revenue from licenses and linear networks. This was partially offset by strong performances from streaming services like Paramount+.
3. **Restructuring Charges and Other Costs**: Paramount Global incurred a net loss in Q4 due to restructuring charges and other costs, which totaled $224 million. These charges, combined with transaction-related expenses, significantly impacted the company's financial performance.

In summary, Paramount Global's Q4 earnings fell short of forecasts due to a combination of factors, including the decline in cable TV units, weakness in the studio and cable business, and restructuring charges and other costs. These factors collectively contributed to a revenue shortfall and a net loss for the quarter.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|PARA|PARA.O|Paramount Global|2024 Q1|-4.0E7|7.685E9|185|
|PARA|PARA.O|Paramount Global|2024 Q2|-3.8E8|6.813E9|185|
|PARA|PARA.O|Paramount Global|2024 Q3|-2.1E8|6.731E9|185|
|PARA|PARA.O|Paramount Global|2024 Q4|-1.3E8|7.984E9|185|