Paramount Global, the media company behind Paramount+, reported its second-quarter financial results, revealing a revenue of $6.81 billion, which represented an 11% decrease compared to the previous year. This revenue figure missed the Street consensus estimate of $7.21 billion. Adjusted earnings per share for the quarter were reported at 54 cents, which was not directly comparable to the 10 cents per share reported in the same quarter of the previous year, and fell short of the Street consensus estimate of 12 cents per share.
Paramount's co-CEOs, George Cheeks, Chris McCarthy, and Brian Robbins, expressed satisfaction with the company's Q2 performance, highlighting significant earnings growth primarily fueled by the Direct-to-Consumer (DTC) segment. The DTC segment experienced a noteworthy increase in subscription revenue by 12% and advertising revenue by 16% year-over-year. Paramount+ specifically recorded a substantial 46% revenue growth compared to the previous year, ending the quarter with 68 million subscribers. However, there was a slight decrease in subscribers due to the termination of a bundle agreement in South Korea.
Rise of the Beasts." Additionally, Paramount highlighted its strategic merger with Skydance Media to create a new Paramount entity, with expectations for the transaction to close in the first half of 2025, subject to closing requirements and a 45-day go-shop period. Paramount's leadership outlined plans to focus on transforming streaming operations, cost-saving initiatives of at least $500 million annually, and achieving domestic profitability for Paramount+ by 2025.