Shares in US media giant Paramount Global (PARA:NASDAQ) plunged over 25% at the start of May, wiping out most of their year-to-date gains.

The firm posted what was generally seen as a dismal set of first quarter earnings, blighted by losses associated with its new streaming service.Sales for the TV business were down 8% in the quarter while advertising revenues were 11% lower as weak demand forced consumer companies to cut their advertising spending.

CEO Bob Bakish said the firm was ‘navigating a challenging and uncertain macroeconomic environment as the combination of peak streaming investment intersects with cyclical ad softness’, although he added there were signs the advertising market was stabilising.

The Paramount+ streaming service reached 60 million global subscribers, growing its revenue by 65%, but losses widened from $456 million a year earlier to
$511 million.

The company also took a $1.7 billion charge for integrating Showtime into Paramount +, and to cap things off cut its dividend by three quarters to save cash.

On the plus side, the firm has restarted the sale process for publisher Simon & Schuster after its failed merger with Penguin Random House.

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