In its second-quarter results, Paramount Skydance reported earnings of 4 cents per share on revenue of $6.91 billion, slightly exceeding Wall Street's expectations of $6.88 billion. The company experienced a 9% increase in revenue from its direct-to-consumer streaming segment, which includes Paramount+, BET+, and Pluto TV, totaling $2.47 billion.
However, revenue from its TV media segment fell by 9% to $3.13 billion. Paramount+ added 2 million subscribers, reaching a total of 81.6 million, marking its best retention quarter ever, driven by popular content like the 'Yellowstone' spinoff and live sports events.
Looking ahead, Paramount raised its full-year 2026 guidance for adjusted EBITDA to between $3.8 billion and $3.9 billion, attributing this to cost savings from its merger with Skydance. The company anticipates total revenue of $30 billion in 2026, reflecting a 4% year-over-year growth. Despite challenges with its cable networks, Paramount remains optimistic about its merger with Warner Bros.
Discovery, which has faced antitrust scrutiny but has received some regulatory approvals. CEO David Ellison expressed confidence in the merger's potential to create a more competitive media entity, although the deal's closing has been postponed to June 2027 due to ongoing legal challenges