Paramount Skydance Corp Q2 FY2025 earnings call

• Shari Redstone thanked shareholders and expressed thanks to the team, emphasizing the importance of content and the upcoming Skydance transaction.
• Chris McCarthy noted the transformation to a streaming-first company, with D2C revenue growth outpacing linear declines. Paramount+ had strong performance with 10 million new subscribers, revenue growth, improved churn, and top 10 SVOD originals. CBS was the most watched broadcast network for 17 consecutive seasons. Paramount Pictures expanded franchises. Over $800 million in annual run rate non-content expense savings implemented.
• Andy Warren detailed the financials, including total company revenue of $6.8 billion, adjusted OIBDA of $824 million, and free cash flow of $114 million.

Direct-to-Consumer: Generated revenue of $2.2 billion, growing 15% year-over-year. Paramount+ finished the quarter with 77.7 million subscribers, a year-over-year increase of 9.3 million subscribers but down 1.3 million subs versus 1Q 25. ARPU growth accelerated to a positive 9% increase year-over-year, and Paramount+ revenue increased nearly $330 million versus 2Q '24. TV Media: Revenue was $4 billion in the second quarter with OIBDA of $853 million. TV media advertising revenue was down 4% year-over-year as higher CPMs were more than offset by viewership declines. TV media affiliate revenue declined 7% versus the prior year. Filmed Entertainment: Generated second quarter revenue of $690 million, up 2% year-over-year. Adjusted OIBDA was a loss of $84 million in the quarter, which compares to a loss of $54 million in the year-ago quarter. This year-over-year change in OIBDA primarily reflects lower profit from licensing.

As the Paramount Skydance Transaction is expected to close on August 7, 2025, it would be inappropriate to outline full year 2025 financial expectations for Paramount stand-alone results.

Certain statements made on the call are forward-looking statements that involve risks and uncertainties, which are discussed in more detail in our filings with the SEC.