Paramount swung to a second-quarter profit of $41 million, or 18 cents per share on an adjusted basis, while revenue rose 1% to $6.9 billion, driven by gains in streaming and studios along with cost-cutting from the Skydance merger.
Streaming division profits surged 44% to $366 million as revenue increased 9% to $2.47 billion. The growth was led by Paramount+, which added 2 million subscribers to reach 81.6 million globally and boosted its own revenue 16% to $2.1 billion.
Paramount reported second-quarter revenue of $6.91 billion, up 1% and slightly above estimates, as growth in its streaming service and studios offset a decline in television, while raising its full-year profit outlook.
Studios revenue climbed 16% to $1.31 billion on stronger third-party television deliveries, the consolidation of Skydance licensing, and better-than-expected performance from the film slate, including “Scary Movie.”
Direct-to-consumer revenue rose 9% to $2.47 billion, led by Paramount+. The streaming service ended the quarter with 81.6 million subscribers, accelerating year-over-year growth to 6%, and recorded its lowest churn ever, boosted by World Cup coverage in parts of Latin America, UFC, and original programming.
Those gains were partly offset by the TV media unit, where revenue fell 9% to $3.13 billion amid lower advertising and affiliate fees.
Net profit was $41 million, or 4 cents a share, down from $57 million, or 8 cents a share, a year earlier. Adjusted earnings per share came in at 18 cents, beating estimates of 15 cents.
For the full year, Paramount now expects adjusted earnings before interest, taxes, depreciation, and amortization of $3.8 billion to $3.9 billion, up from its prior $3.8 billion forecast, as the company continues to control costs.