Paramount Skydance raises full-year profit guidance, remains 'confident' about WBD merger

Paramount Skydance has increased its full-year profit forecast and reported a solid second-quarter outcome, despite the ongoing challenges of its cable TV networks. Revenue for the period ending June 30 came in at $6.91 billion, slightly above Wall Street estimates. The streaming service, Paramount+, saw a 9% increase in revenue to $2.47 billion, while film studios revenue rose 16% to $1.31 billion.

However, TV media revenue fell by 9% to $3.13 billion. The company also noted that its Paramount+ streaming platform enjoyed its best subscriber retention in history, thanks to popular series like Yellowstone's spinoff Dutton Ranch and live sports events. Paramount+ added 2 million subscribers in the quarter, bringing its global customer base to 81.6 million.

The company is raising its adjusted earnings before interest, taxes, depreciation, and amortization guidance for 2026 to a range of $3.8 billion to $3.9 billion, thanks to merger-related cost savings. Despite the merger with Skydance, Paramount expects total revenue of $30 billion in 2026, marking a 4% growth compared to the previous year.

The company expects direct-to-consumer revenue to accelerate, and for Paramount+ to maintain a steady subscriber growth rate. CEO David Ellison expressed confidence in the impending merger with Warner Bros. Discovery, stating that the combined entity would be a "stronger, more competitive, creative-first media company." The deal has faced an antitrust challenge from U.S. states, with a trial set for March 2027.