12:11 PM EDT, 03/28/2025 (MT Newswires) -- Paramount Global's ( PARAA ) Q1 financial results are expected to reflect larger declines in television affiliate revenue as well as "tough" TV media comps for earnings before interest, taxes, depreciation, and amortization, UBS said in a Thursday note.

The analysts said they project Q1 results to show similar trends in core advertising compared with a year earlier. Q1 TV media affiliate revenue is expected to decline 9.2% year-over-year compared with a 6.7% decline in Q4 and TV media EBITDA is seen to decrease 36% from the year-ago quarter, followed by "improved declines" over the next quarters as cost-reduction measures start to produce tangible results, UBS analysts said.

The analysts also expect an 8.5% year-over-year decline in Q1 overall revenue, compared with a prior view for a 9% decline, and about a 34% drop in EBITDA to around $654 million, compared with a prior estimate for $585 million.

The analysts said management previously indicated that EBITDA growth would be weighted toward H2, with a slight overall decline for the full year due to the impact of the Super Bowl, political advertisements, core television declines, and improving direct-to-consumer losses. The analysts are now projecting around $2.9 billion in EBITDA for 2025, a 6% decline from the prior year, while free cash flow is expected to grow due to better working capital.

UBS has a sell rating on the stock with an $11 per share price target.

Shares were down 1.1% in recent trading.

Price: 11.56, Change: -0.13, Percent Change: -1.07