Revenue Down at Paramount, But Cost Containment and FX Gains Boost Profit

• Despite a 3.4% contraction in revenue, Paramount reported a 5.4% increase (or $2.03Mn) in net profit to $39.54Mn (EPS: $0.026) for the first half of its financial year ending November 2019.
• The result was driven by a 9.1% (or $19.72Mn) reduction in operating expenses, which management credits to its cost containment programs.  The bottom line was also supported by a 268.7% (or $16.6Mn) surge in other operating income which was mainly due to foreign exchange gains.
• The company’s stock price has declined by 23.2% since the beginning of the year to end Wednesday’s trading session at $1.72. the stock currently trades at a P/E of 41.0x earnings which is above the junior market distribution sector of 23.1x earnings.

(Source: Paramount Financials)