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.
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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.
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More to come