LOS ANGELES, CALIFORNIA, Aug 4 — Paramount Skydance reported mixed second-quarter results on Tuesday, with higher streaming and studio revenue offsetting declines in television, as the company advances its planned $110 billion acquisition of Warner Bros.

The entertainment giant's revenue rose 1% to $6.91 billion, surpassing estimates of $6.88 billion. However, second-quarter profit was $41 million (4 cents per share), below analyst expectations of $109 million (9 cents per share).

Streaming revenue reached nearly $2.5 billion, up 9% year-over-year. The Paramount+ service added 2 million new subscribers, totaling 81.6 million, helped by the "Yellowstone" sequel "Dutton Ranch" and major sporting events including the UFC Freedom 250 cage-match and the FIFA World Cup.

Paramount's studio business generated $1.3 billion in revenue, buoyed by strong sales to third-party platforms like Netflix and Amazon Prime Video and improved content licensing. This was partially offset by a weaker summer theatrical lineup, with "Jackass: Best and Last" as the highlight compared to last year's "Mission: Impossible — The Final Reckoning."

Paramount Chief Operating Officer Andy Gordon told Reuters that the company has consolidated its streaming services onto a single technology platform to better promote content. Gordon also noted progress in consumer products licensing, securing a multi-year deal with Mattel for the Teenage Mutant Ninja Turtles brand.

Looking ahead, CEO David Ellison expects revenue for the quarter ending in September to range between $6.95 billion and $7.15 billion, with profit before certain items projected between $875 million and $975 million.

Meanwhile, a federal judge in California ruled that the lawsuit filed by California and 11 other states to block the Warner Bros acquisition will proceed to trial in March 2027. In response, Paramount stated the lawsuit "does not reflect the realities of today's highly competitive entertainment marketplace." Ellison also published an essay in the New York Times arguing that concerns over the merger focus less on market concentration.

Sources