Paramount Skydance Reports a Mixed Second Quarter as The Warner Agreement is Set to Go to Trial

As it works to finalize its planned $110 billion acquisition of Warner Bros. Discovery (WBD.O), Paramount Skydance (PSKY.O), opens new tab, posted mixed second-quarter results on Tuesday, with greater streaming and studio revenue offsetting reductions in television.

According to figures provided by LSEG, the entertainment giant’s sales increased 1% to $6.91 billion, surpassing predictions of $6.88 billion.

In contrast to analyst projections of $109 million, or 9 cents per share, the second-quarter profit was $41 million, or 4 cents per share.

David Ellison, CEO of Paramount, stated that he anticipates closing the Warner Bros. merger. even as a federal judge on Tuesday scheduled the trial of an antitrust lawsuit filed by twelve states in an attempt to thwart the agreement for March. Ellison stated on an earnings call that the business is “absolutely ⁠open to finding a solution out of court, but we also really believe that we’ll win at trial.”

Paramount’s streaming division brought in about $2.5 billion for the second quarter, a 9% increase over the same period last year. The “Yellowstone” sequel, “Dutton Ranch,” and athletic events like the FIFA World Cup and the UFC Freedom 250 cage bout, according to the business, helped its flagship Paramount+ service attract 2 million new subscribers, bringing the total to 81.6 million.

In order to better promote content, the company has combined its streaming services into a single technological platform, Chief Operating Officer Andy Gordon told Reuters. Strong sales to Netflix and Amazon Prime Video, as well as improved content licensing, contributed to Paramount’s studio business reporting $1.3 billion in revenue for the second quarter. However, this was counterbalanced by a weaker summer theatrical slate, the high point of which was “Jackass: Best and Last,” as opposed to last year’s “Mission: Impossible — The Final Reckoning.”

According to Gordon, Paramount has made progress in licensing consumer goods, reaching a multi-year agreement with Mattel for its entertainment brand Teenage Mutant Ninja Turtles.

The television division’s sales, which comprise cable networks like Comedy Central and broadcaster CBS, fell 9% to $3.1 billion.