Paramount Global Posts Q2 Loss

Revenues at Paramount Global fell by 11 percent in the second quarter to $6.8 billion, with the company reporting a net loss of $5.4 billion after taking an impairment charge on the value of its cable networks.

Last month, the company agreed to a merger with Skydance and is currently in a 45-day “go-shop” window for other bidders. Should the Skydance transaction proceed, it is expected to close in 2025.

TV media revenues slumped by 17 percent in Q2 to $4.3 billion, with ad revenues falling by 11 percent to $1.7 billion, affiliate down 5 percent to $1.9 billion and licensing falling by 48 percent to $630 million.

Direct-to-consumer was a bright spot, with revenues rising 13 percent to $1.9 billion. Subscription revenues increased by 12 percent to $1.4 billion. Advertising revenues at Paramount+ and Pluto TV rose 16 percent to $513 million. Paramount+ ended Q2 with 68 million subs.

Filmed entertainment fell by 18 percent to $679 million.

Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins noted: “Our strong performance in Q2 demonstrates that we are delivering on our strategic priorities. We are proud of our results, including significant earnings growth largely driven by our DTC segment. In fact, for the fourth year in a row, Paramount+ is leading the industry in domestic sign-ups driven by our big broad hit TV series and blockbuster films. DTC profit growth for the past four quarters has totaled nearly $900 million and we are on track to reach domestic profitability for Paramount+ in 2025. Looking ahead, we will continue to aggressively execute on our strategic plan which focuses on transforming streaming to accelerate profitability, streamlining our organization—including at least $500 million in annualized cost savings—and improving the balance sheet by growing free cash flow and optimizing our asset mix. We are confident that our plan will drive long-term value by leveraging our broad hit content as we continue to transform Paramount for the future.”