RESOLVING THE LEDGER
This is one outlet's own report from CNBC — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
See the full story · 2 sources
Paramount Skydance raised its full-year guidance on Tuesday and reported second-quarter results that showcased the continued strengths of streaming and weaknesses of linear TV.
While Paramount beat Wall Street expectations for revenue and reported gains in its streaming unit, led by its Paramount+ streaming service, its portfolio of cable TV networks continued to weigh on the overall company.
Still, Paramount noted that cost cutting and its "creative execution" for the traditional TV business helped to improve margins and profit in the quarter.
Here's how Paramount Skydance performed in the period ended June 30 compared with Wall Street estimates compiled by LSEG:
Paramount reported net earnings attributable to the company of $41 million, or 4 cents per share, versus $57 million, or 8 cents per share, in the comparable year-earlier period.
The company's reported EPS for the second quarter was not comparable to Wall Street estimates of 15 cents per share adjusted, according to LSEG.
Paramount reported $6.91 billion in total revenue, up slightly year over year. Revenue for the direct-to-consumer streaming segment — which consists of Paramount+, BET+ and the free, ad-supported Pluto TV — was up 9% to $2.47 billion, while film studios revenue increased 16% to $1.31 billion. TV media revenue declined 9% to $3.13 billion.
The company said the second quarter was its "best quarter for retention in Paramount+'s history," due to series like the "Yellowstone" spinoff "Dutton Ranch," as well as live sports like the UFC and offering of the FIFA World Cup in parts of Latin America.
Paramount+ added 2 million subscribers during the quarter, bringing its total to 81.6 million global customers.
The company said Tuesday it was raising its full-year 2026 guidance for adjusted earnings before interest, taxes, depreciation and amortization to a range of $3.8 billion to $3.9 billion, due to savings from last year's merger of Paramount and Skydance. The company has said it plans to save $3 billion from the consolidation.
Paramount still expects total revenue in 2026 of $30 billion, representing 4% growth year over year. Direct-to-consumer revenue from both streaming subscriptions and advertising is expected to accelerate for the year.
For the third quarter, Paramount expects total revenue of between $6.95 billion and $7.15 billion and for Paramount+ subscriber additions to be "flattish" quarter over quarter.
Tuesday's earnings report comes nearly one year since the completion of Skydance's merger with Paramount, putting the storied Hollywood company under the leadership of CEO David Ellison.
The company highlighted "early benefits" to unifying the tech behind Paramount+ and Pluto TV. It also noted that it increased Paramount's film slate from eight to 15 films.
Paramount has more recently been in pursuit of Warner Bros. Discovery , a combination that has been held up by an antitrust challenge brought by U.S. states.
However, Ellison reiterated the company's confidence in that merger Tuesday.
"As we've executed against our strategy over the past year, we've also prepared to close the transaction, and we remain confident it will be completed, creating a stronger, more competitive, creative-first media company that builds on the foundation we've established — one that benefits consumers, theater exhibitors and creatives," he said in a shareholder letter.
Last month, Paramount agreed to delay the closing of the proposed acquisition to as late as June 2027 due to the lawsuit brought forth by a group of state attorneys general.
Initially Paramount said it planned to close the deal by the end of September. It has received approval from the antitrust division of the U.S. Department of Justice, as well as from several global jurisdictions, including European regulators .
The U.S. states' lawsuit will go to trial in March 2027, according to a court filing on Tuesday.
Got a confidential news tip? We want to hear from you.
Get this delivered to your inbox, and more info about our products and services.
Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.