Paramount Skydance Reports Loss in Q3

In the third quarter, Paramount Skydance delivered revenues of $6.7 billion, flat on a pro forma basis compared to the same period a year ago, and a net loss of $257 million.

Of the $6.7 billion in revenues, $2.6 billion was earned by the pre-merger staff from July 1 to August 6, while $4.1 billion was earned by the post-merger staff from August 7 to September 30.

Direct-to-consumer revenues increased by 17 percent year-over-year, driven by a 24 percent increase in Paramount+ revenues. Direct-to-consumer revenues from non-Paramount+ sources, primarily Pluto, underperformed the growth of Paramount+.

In TV media, revenues dropped 12 percent year-over-year, driven by advertising declines of 12 percent. A decline in affiliate revenues of 7 percent year-over-year was due to a decline in pay-TV subscriber volume.

In Q4, the company excepts total revenues of $8.1 billion to $8.3 billion, or a 1 to 4 percent growth year-over-year versus Q4 2024.

A letter to shareholders said: “Nearly 100 days have passed since we launched the new Paramount, and we are pleased with the progress to date. Our goal in bringing together Paramount and Skydance was to honor a company with over a century of storied history and profound cultural impact, while transforming it for the future through investments in exceptional storytelling, innovative technology and strategic growth opportunities that will shape the next era of entertainment. Today, we are confident we are on the right path—taking the necessary steps to build a stronger, more enduring company for the future.”

“On day 1, we identified our North Star priorities—areas where we see the greatest opportunity to invest, innovate and drive meaningful progress: investing in our growth businesses anchored by our creative engines and exceptional storytelling, scaling our direct-to-consumer business globally and driving efficiency enterprise-wide with a focus on long-term free cash flow generation.

“Over the past three months, we have taken early but meaningful steps to advance these priorities—making key leadership hires, pursuing high-impact partnerships to deliver even more exceptional stories, sports and news to our audiences, expanding our world-class roster of creative talent, reigniting performance across our studios, maximizing the value of our highly profitable CBS portfolio and streamlining overlapping functions to drive efficiency across the organization. Through it all, we’ve stayed true to our guiding purpose: storytelling.”