Future directors comprise world-renowned, accomplished leaders from media, technology, and global business LOS ANGELES, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Skydance Media today announced the full slate of director designees for Paramount Skydance Corporation ("Paramount"). The directors will be elected and begin serving on the Paramount Board effective at the closing of the proposed merger with Paramount Global (NASDAQ: PARA, PARAA). The Paramount Board will consist of 10 directors, including three independen ...

Core Insights - Paramount Global (PARA) reported adjusted earnings of 46 cents per share for Q2 2025, exceeding the Zacks Consensus Estimate by 12.2%, but down 15% from the previous year [1][8] - Revenues reached $6.85 billion, slightly missing the Zacks Consensus Estimate by 0.22%, with a year-over-year increase of 1% [1][8] - The revenue growth was primarily impacted by softness in TV Media revenues [1] Revenue Details - Advertising revenues, accounting for 31.44% of total revenues, fell 4.4% year over year to $2.153 billion [3] - Affiliate revenues, making up 50.3% of total revenues, increased significantly by 42.3% year over year to $3.445 billion [3] - Theatrical revenues rose 84.05% year over year to $254 million, while licensing and other revenues decreased by 13.32% to $1.009 billion [3] Segment Performance - Direct-to-Consumer (DTC) revenues grew 14.9% year over year to $2.16 billion, with subscription revenues increasing by 21.8% due to subscriber growth and price hikes for Paramount+ [4] - DTC adjusted OIBDA improved by $131 million year over year, indicating strong revenue growth [6] - TV Media revenues decreased by 6.08% year over year to $4.01 billion, driven by declines in affiliate and advertising revenues [7] Financial Metrics - Consolidated adjusted OIBDA fell 5% year over year to $824 million, reflecting improvements in D2C [2] - Selling, general, and administrative expenses decreased by 11.3% year over year to $1.4 billion [2] - As of June 30, 2025, cash and cash equivalents stood at $2.74 billion, with total debt remaining at $14.16 billion [13] Notable Achievements - Paramount+ reached 77.7 million subscribers, despite a decrease of 1.3 million in the quarter [6] - The platform's global ARPU increased by 9%, and domestic watch time per user rose by 11% year over year [6] - CBS maintained its position as the most-watched broadcast network for the 17th consecutive season, airing 14 of the top 20 series [10]

Core Viewpoint - Paramount Global is effectively transitioning from traditional TV to digital platforms, leveraging its content library to enhance direct-to-consumer offerings and drive revenue growth [1]. Financial Performance - Paramount Global reported quarterly earnings of $0.46 per share, exceeding the analyst consensus estimate of $0.35 by 29% [1]. - Quarterly sales reached $6.849 billion, a 1% year-over-year increase, surpassing the analyst consensus estimate of $6.841 billion [1]. Direct-to-Consumer Segment - Direct-to-consumer (DTC) revenue rose to $2.2 billion, reflecting a 14.9% year-over-year increase, driven by growth in Paramount+ subscribers and recent price increases [2]. - Adjusted OIBDA for the DTC segment reached $157 million, above both analyst and market estimates [2]. - Paramount+ experienced record-low churn and a third consecutive quarter of rising watch time per user, which increased by 11% year-over-year [3]. Advertising Revenue - DTC advertising revenue fell by 4% due to increased digital ad supply impacting pricing [3]. - Traditional TV advertising also declined, with rising rates being offset by a decrease in viewership [3]. - Strength in upfront ad sales was noted, with volumes consistent with the previous year and sports bookings increasing by double digits [4]. Future Projections - The price target for Paramount shares is set at $14, based on a 6.8 times OIBDA multiple, reflecting the company's strong content portfolio and shift towards streaming [5]. - Projected third-quarter revenue is $6.77 billion, with an expected EPS of $0.43 [5].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Paramount Global-B (PARA) reported revenue of $6.85 billion for the quarter ended June 2025, reflecting a 0.5% increase year-over-year, but a slight miss of 0.22% against the Zacks Consensus Estimate of $6.86 billion [1] - The company's EPS was $0.46, down from $0.54 in the same quarter last year, but exceeded the consensus estimate of $0.41 by 12.2% [1] Financial Performance Metrics - Global Paramount Subscribers reached 77.7 million, surpassing the estimated 77.5 million [4] - TV Media revenues were $4.01 billion, slightly above the average estimate of $4 billion, but down 6.1% year-over-year [4] - Filmed Entertainment revenues were $690 million, below the average estimate of $768.72 million, marking a 1.6% increase year-over-year [4] - Direct-to-Consumer revenues totaled $2.16 billion, exceeding the estimate of $2.14 billion, with a significant year-over-year increase of 14.9% [4] - Direct-to-Consumer Advertising revenues were $494 million, slightly below the estimate of $505.59 million, reflecting a 3.7% decrease year-over-year [4] - Revenues from Eliminations were reported at -$12 million, better than the estimate of -$20.48 million, showing a year-over-year change of -29.4% [4] - Filmed Entertainment Licensing and Other revenues were $434 million, below the estimate of $456.4 million, down 18.7% year-over-year [4] - TV Media Advertising revenues were $1.66 billion, slightly above the estimate of $1.62 billion, down 4.4% year-over-year [4] - TV Media Affiliate and Subscription revenues were $1.78 billion, exceeding the estimate of $1.75 billion, down 6.7% year-over-year [4] - TV Media Licensing and Other revenues were $574 million, below the estimate of $636.26 million, down 8.9% year-over-year [4] - Affiliate and Subscription Fees revenues were $3.45 billion, slightly above the estimate of $3.42 billion, reflecting a 5.2% increase year-over-year [4] - Direct-to-Consumer Subscription revenues were $1.67 billion, matching the estimate, with a notable year-over-year increase of 21.8% [4] Stock Performance - Shares of Paramount Global-B have returned +3.6% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Earnings Performance - Paramount Global reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.54 per share a year ago, indicating an earnings surprise of +4.55% [1] - The company posted revenues of $6.85 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.47%, and showing a slight increase from $6.81 billion year-over-year [2] Stock Performance and Outlook - Since the beginning of the year, Paramount Global shares have increased by approximately 4.4%, while the S&P 500 has gained 8.2% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $6.85 billion, and for the current fiscal year, it is $1.25 on revenues of $28.64 billion [7] Industry Context - The Media Conglomerates industry, to which Paramount Global belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Group 1: Earnings Performance - Paramount Global-B reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, but down from $0.54 per share a year ago, representing an earnings surprise of +12.20% [1] - The company posted revenues of $6.85 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.22%, compared to revenues of $6.81 billion a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - Paramount Global-B shares have increased approximately 27.2% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $6.68 billion, and for the current fiscal year, it is $1.28 on revenues of $28.29 billion [7] - The estimate revisions trend for Paramount Global-B was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Media Conglomerates industry, to which Paramount Global-B belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Core Viewpoint - Paramount Global is preparing for a merger with Skydance, with Shari Redstone expressing confidence in Skydance's ability to manage the company's assets effectively as the merger approaches on August 7 [1][5]. Company Overview - Shari Redstone emphasized the importance of content in the media industry, a philosophy instilled by her father, Sumner Redstone, who built Viacom and CBS over nearly 40 years [2]. - Paramount has achieved significant milestones, including being the number one broadcast network for 17 consecutive years and delivering top-rated programming across various genres [3]. Merger Details - The merger involves Paramount acquiring Skydance in an all-stock deal that values Skydance at $4.75 billion, with Skydance offering up to $4.5 billion in cash for Class A and B shares [5]. - Following the merger, the Skydance investor group will own 100% of New Paramount Class A shares and 69% of outstanding Class B shares [5]. Financial Aspects - Redstone's family holding company, NAI, is being acquired for $2.4 billion as part of the transaction, raising questions about transparency regarding this payout [4][6]. - Paramount's shares have faced significant declines due to challenges in the traditional media landscape, particularly the drop in linear television viewership [6]. Historical Context - The Redstone family's media empire began in 1934 with a drive-in theater and expanded to include major acquisitions like Viacom, Paramount, and CBS [6]. - The current version of Paramount+ was launched in 2021, and Shari Redstone began exploring the sale of the company in late 2024 [7].

Core Insights - Paramount Global reported significant financial improvements, including an 84% increase in theatrical revenue driven by "Mission: Impossible – The Final Reckoning," which grossed nearly $600 million globally [1] - The company experienced a 1% increase in total revenue to $6.85 billion, with direct-to-consumer (DTC) growth outpacing linear revenue declines [3] - Paramount+ ended the quarter with 77.7 million subscribers, reflecting a decrease of 1.3 million due to the expiration of an international hard bundle deal [4] Financial Performance - Theatrical revenue surged by 84% due to the success of "Mission: Impossible – The Final Reckoning" [1] - Total company revenue increased by 1% to $6.85 billion, with DTC profits showing a $131 million year-over-year improvement to $157 million [3] - The company achieved a profit of $57 million, a significant turnaround from a $5.4 billion loss in the same quarter last year [3] Streaming and Content Growth - Paramount+ saw strong subscription revenue growth, contributing to a 5% increase in affiliate and subscription revenue across the company [3] - The platform experienced a 26% increase in viewership compared to the first half of 2024, with CBS content driving nearly half of all viewing on Paramount+ [7] - Paramount+ had the most Top 10 SVOD Originals, ranking just behind the market leader [7] Merger and Leadership Changes - Paramount's merger with Skydance, valued at $8.4 billion, was approved by the FCC, with a planned closing date of August 7 [4] - The value of Paramount Class B shares in the merger agreement is set at $15, although shares have not traded at that level historically [8] - Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins are expected to see leadership changes post-merger, with Cheeks remaining in the new company [9]

Financial Data and Key Metrics Changes - The company reported core FFO of $0.17 per share for Q2 2025, exceeding consensus estimates by $0.03 [6][26] - The company raised full year guidance for core FFO to a range of $0.55 to $0.59 per share, representing a $0.03 increase from prior guidance [27] - The same store lease occupancy guidance was increased to a range of 86.9% to 88.9%, reflecting continued strength in the New York portfolio [28] Business Line Data and Key Metrics Changes - The company executed over 400,000 square feet of leases in Q2 2025, with a year-to-date total of approximately 690,000 square feet [7][18] - The weighted average term for leases signed during the quarter was 12.9 years, with starting rents above $90 per square foot [18][26] - The New York portfolio was 88.1% leased, up 70 basis points quarter over quarter, while the San Francisco portfolio was 75.1% leased, down 720 basis points due to a scheduled lease expiration [22][25] Market Data and Key Metrics Changes - In New York, leasing activity excluding renewals was 3.8 million square feet, 10% ahead of the five-year quarterly average [20] - San Francisco's overall leasing volumes are still below long-term averages, but there are signs of stabilization with a decline in availability by 110 basis points quarter over quarter [22][13] - AI-based companies accounted for over 800,000 square feet of leasing year-to-date in San Francisco, indicating a growing demand in that sector [23] Company Strategy and Development Direction - The company is focused on capital allocation strategies that include selective dispositions, joint ventures, and reinvestment into high-conviction assets [15] - The company is committed to enhancing tenant relationships and delivering market-leading hospitality to secure renewals and fill vacant spaces [19] - The company is actively pursuing refinancing opportunities and maintaining balance sheet strength with over $534 million in cash [16][29] Management's Comments on Operating Environment and Future Outlook - Management noted a sustained flight to quality in the New York market, with tenants prioritizing well-located, amenity-rich buildings [10] - In San Francisco, management observed a gradual recovery with increasing tenant interest, particularly from sectors like AI and professional services [14] - Management expressed confidence in the long-term recovery of the San Francisco market despite near-term softness due to lease expirations [28] Other Important Information - The company is undergoing a strategic review to maximize shareholder value, but no further comments were provided during the call [4] - The company completed the sale of a 25% equity interest in 1 Front Street, generating $11.5 million in net proceeds [30] - The company designated Market Center as a non-core asset and has completed its disposal [31] Q&A Session Summary Question: Can you talk about tenant demand for 1633 Broadway? - Management indicated active showings and strong retail performance, with asking rents ranging from $70 to $90 per square foot [34][38] Question: What are your thoughts on concessions and future pricing? - Management noted that concessions have stabilized and expect net effective rents in New York to increase, while San Francisco remains elevated [39][41] Question: Can you provide commentary on large move-outs and renovations? - Management confirmed ongoing improvements at 1633 Broadway and expressed optimism about demand in Midtown [48][50] Question: How is the political situation in New York affecting leasing? - Management reported no hesitation from tenants regarding long-term leases despite political changes [51][52] Question: Is the SEC investigation impacting the strategic review? - Management stated that the SEC inquiry is not expected to significantly impact the strategic review [53][54] Question: How is San Francisco's leasing strategy adjusting to market conditions? - Management noted increased activity across various sectors, not just AI, and a positive trend in tenant engagement [58][61]