Paramount Skydance said second-quarter profit fell, even as the company was boosted by its streaming media and studios operations, while its large TV division shed ad dollars and subscribers. David Ellison, the company’s CEO, vowed that its deal to acquire Warner Bros. Discovery would close, despite legal setbacks that have slowed the transaction.
“While there is still significant work to be done, our confidence in the opportunity continues to grow, and
we’re excited for the future of this company powered by storytelling and accelerated by technology,” Ellison said in a letter to shareholders Tuesday.
Paramount said net earnings fell to $41 million, or four cents per share, in the second quarter, compared with $57 million, or eight cents a share, in the year-earlier period. Revenue rose 1% to $6.91 billion, compared with nearly $6.85 billion a year earlier.
In the company’s TV operations, the largest part of its business, revenue fell 9%, to $3.12 billion, compared with $3.45 billion a year earlier. Ad revenue fell 14%, due in part to difficult comparisons with 2025 that involved more NCAA advertising. Distribution fees fell 6%, due in large part to erosion of linear subscriptions.
Revenue from streaming operations rose 9% to $2.5 billion, with revenue from Paramount+ rising 16%. The service added 2 million subscribers in the second quarter, ahead of expectations. The company cited FIFA World Cup telecasts in certain Latin American nations as as UFC broadcasts in the U.S., and said Paramount+ had its “lowest churn quarter” since launch.
Revenue from the company’s studios rose 16% year-over-year to $1.3 billion, owing in part to films such as “Scary Movie” and programming for third parties from its TV production operations.
Paramount said its upfront sales process had ended, and it had secured “double-digit growth in commitments across the company,” without offering further details about volume or pricing.
The company projected revenue in the third quarter would grow between 4% to 7%, increasing to $6.95 billion and $7.15 billion, with more growth from studios and streaming and “moderating declines” from TV. Subscribers to Paramount+ are seen as “flattish.”
Despite a recent legal setback that will delay the closing of its deal for Warner, Ellison said he remained optimistic it would eventually close. “We remain confident the transaction will be completed, creating a stronger, more competitive media company,” he said, describing the combined entity as a smaller player when compared with “tech giants such as Netflix, Amazon, Apple, and others.”
More to come
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