Paramount profit beats estimates ahead of Skydance merger

Days before a new ownership team takes control of the company, Paramount Global reported second-quarter earnings that beat analysts’ estimates, crediting lower costs and growth in streaming profit.

Earnings totaled 46 cents a share excluding some items, the company said Thursday in a statement, exceeding estimates of 37 cents. The parent of CBS, MTV and other media businesses posted revenue of $6.85 billion, in line with expectations.

The Paramount+ streaming service lost 1.3 million customers during the second quarter, which was better than analysts had expected. The platform, which hosts shows like “Landman,” has a total of 77.7 million subscribers. The company’s direct-to-consumer unit posted adjusted operating income before depreciation and amortization of $157 million, up from $26 million a year ago.

On the traditional TV side, Paramount’s revenue dropped 6% to $4.01 billion, reflecting lower ad sales and falling fees from cable-TV providers. Adjusted operating income fell 15% to $863 million. Paramount’s film division posted an $84 million loss.

The company is preparing to complete its merger with Skydance Media on Aug. 7. The U.S. Federal Communications Commission approved the deal last week following months of uncertainty. Skydance, which is led by David Ellison, the son of Oracle Corp. co-founder Larry Ellison, agreed last July to take control of Paramount following tumultuous negotiations.

Ellison will serve as chairman and chief executive officer of the merged company, while former NBCUniversal executive Jeff Shell will step in as president.

To win FCC approval, Skydance vowed to ensure that the new company’s programming embodies a diversity of political viewpoints. Paramount will also employ an ombudsman for two years to evaluate bias complaints. Following the deal closure, Paramount’s stock will begin trading under the ticker symbol “PSKY.”

Miller writes for Bloomberg.