Paramount Skydance reports mixed second quarter as Warner deal faces March trial

Paramount Skydance reported mixed financial results for the second quarter, with revenue growth in streaming and studios offsetting declines in television. The company's revenue rose 1% to $6.91 billion, surpassing estimates, while profit came in at $41 million, or 4 cents per share, below expectations. Paramount CEO David Ellison stated that the merger with Warner Bros. is expected to close, despite a March trial date for an antitrust lawsuit from twelve states.

Stream revenue reached nearly $2.5 billion, up 9% year-over-year, driven by the Yellowstone sequel, Dutton Ranch, and sporting events. The studio business reported $1.3 billion in revenue, boosted by strong third-party sales and better content licensing, but hurt by a weaker summer theatrical lineup. The television unit saw a 9% drop in revenue to $3.1 billion.

The company expects Q3 revenue between $6.95 billion and $7.15 billion, with adjusted profit between $875 million and $975 million. The antitrust lawsuit is not reflective of the current entertainment market, according to Paramount.