Communication Services
Entertainment
$7.29B
22K
Paramount Global operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; domestic premium and basic cable networks, such as Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, and CBS Sports Network; and international extensions of these brands. This segment also offers domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first-run syndicated programming; and digital properties consisting of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment provides a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, BET+, and Noggin. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consisting of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It also offers production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.
Key insights and themes extracted from this filing
Paramount Global reported net earnings attributable to Paramount of $57 million for Q2 2025, a substantial improvement from a net loss of $5,413 million in Q2 2024. This positive shift is primarily due to the absence of the $5.98 billion goodwill impairment charge recorded in the prior year.
Total revenues increased slightly by 1% to $6,849 million in Q2 2025 compared to $6,813 million in Q2 2024. However, for the six months ended June 30, 2025, revenues decreased 3% to $14,041 million from $14,498 million in the prior-year period, largely due to the absence of the Super Bowl LVIII broadcast.
Adjusted OIBDA, a key non-GAAP profitability metric, decreased 5% to $824 million in Q2 2025 from $867 million in Q2 2024, and declined 18% to $1,512 million for the six months ended June 30, 2025. This reflects lower profits from linear networks, partially offset by improved Direct-to-Consumer results.
Paramount entered into a transaction agreement with Skydance Media, LLC, which will result in Paramount and Skydance becoming subsidiaries of a new holding company, New Paramount. This strategic move includes a $6.0 billion investment into New Paramount by NAI Equity Investors, with $4.5 billion earmarked for a cash-stock election for Paramount stockholders, signaling a significant strategic pivot.
The Direct-to-Consumer segment shows robust growth, with Paramount+ subscription revenues increasing 22% in Q2 2025 and 19% for the six months ended June 30, 2025. Subscribers grew by 14% to 77.7 million at June 30, 2025, up from 68.4 million a year prior, indicating successful organic growth in streaming.
The Filmed Entertainment segment saw theatrical revenues jump 84% in Q2 2025, an increase of $116 million, primarily driven by the successful release of 'Mission: Impossible - The Final Reckoning.' This highlights the continued importance of major film releases to the company's revenue strategy.
Management recorded $177 million in severance costs in Q2 2025 due to strategic changes in the global workforce, part of a broader effort to streamline the organization. Additionally, $65 million in exit costs for lease asset impairment were incurred over six months to reduce real estate footprint and create cost synergies, demonstrating a commitment to operational efficiency.
The Direct-to-Consumer segment's Adjusted OIBDA significantly improved to $157 million in Q2 2025, a $131 million increase from $26 million in Q2 2024. For the six months, it swung to a positive $48 million from a loss of $260 million, indicating effective management of streaming costs relative to revenue growth.
Despite an increase in content costs for streaming and theatricals, TV Media segment's content costs decreased 1% in Q2 2025 and 4% for the six months ended June 30, 2025. This was partially due to the absence of Super Bowl LVIII costs in 2025, suggesting management's ability to optimize content spending within the linear business.
The proposed Skydance transaction is subject to customary closing conditions, a potential $400 million termination fee, and requires third-party consents which, if not obtained, could materially adversely affect the business. Multiple lawsuits have been filed by stockholders alleging breaches of fiduciary duties and challenging the deal, creating substantial legal uncertainty.
TV Media advertising revenues decreased 4% in Q2 2025 and 13% for the six months, primarily reflecting declines in the linear advertising market and new entrants to the digital advertising market. This ongoing trend poses a significant risk to a core segment of the company's business.
The company continues to face a substantial number of asbestos claims, with approximately 17,790 pending as of June 30, 2025. While the number of claims decreased slightly from December 2024, the inherent uncertainties in tort litigation and the difficulty in predicting long-term liabilities represent an ongoing financial risk.
Paramount+ global subscribers increased by 9.3 million year-over-year to 77.7 million, and subscription revenues grew 22% in Q2 2025. This strong performance in the Direct-to-Consumer segment indicates the company's ability to compete effectively in the evolving streaming landscape and attract new users.
The TV Media segment experienced a 7% decrease in affiliate and subscription revenues in Q2 2025 due to linear subscriber declines, and advertising revenues were down 4% due to the linear advertising market and new digital entrants. This highlights the competitive pressures from cord-cutting and the shift to digital platforms.
The 84% increase in theatrical revenues in Q2 2025, driven by 'Mission: Impossible - The Final Reckoning,' demonstrates Paramount's continued ability to produce and distribute blockbuster content. This success provides a competitive edge in content creation and monetization across various platforms.
Selling, general and administrative expenses decreased 11% in Q2 2025 and 9% for the six months, primarily due to lower compensation costs following strategic changes in the global workforce in 2024. This indicates successful efforts to reduce overhead and improve operational efficiency.
Depreciation and amortization expense decreased 14% in Q2 2025 and 13% for the six months, largely due to technology assets becoming fully depreciated. This reduction in non-cash expenses contributes positively to net earnings and suggests efficient utilization or modernization of technology infrastructure.
The company incurred $65 million in exit costs during the six months ended June 30, 2025, primarily for the impairment of lease assets as part of initiatives to reduce its real estate footprint. This move aims to create cost synergies and improve long-term operational efficiency.
The Direct-to-Consumer segment's content costs increased 9% in Q2 2025, primarily reflecting higher costs for original programming, and advertising/marketing expenses increased 11% to promote Paramount+ original series. This indicates ongoing investment in content and technology to drive streaming growth.
Net cash flow from operating activities includes payments for 'transformation initiatives' related to 'advancing our technology, including the unification and evolution of systems and platforms, and migration to the cloud.' This suggests active efforts to modernize technological infrastructure.
The decrease in depreciation and amortization expense by 14% in Q2 2025 is primarily due to technology assets becoming fully depreciated. This could imply a significant portion of the company's technology infrastructure has reached maturity, potentially reducing future capital expenditure needs for replacement if not for upgrades.
Total debt remained relatively stable at $14,514 million at June 30, 2025, compared to $14,501 million at December 31, 2024. The company notes it routinely assesses its capital structure and opportunistically manages debt maturities, indicating a prudent approach to leverage.
Paramount Global did not purchase any shares under its publicly announced share repurchase program during Q2 2025, despite having $2.36 billion in remaining authorization. This suggests a prioritization of cash for other strategic uses, potentially related to the Skydance transaction or operational investments.
The company declared common stock dividends of $0.05 per share in Q2 2025, totaling $35 million, consistent with the prior year. For the six months, total common stock dividends were $70 million, indicating a stable commitment to shareholder returns through dividends.
The 10-Q filing does not provide detailed quantitative or qualitative information regarding specific environmental, social, or governance initiatives, commitments, or progress. While the cautionary statements mention 'increasing scrutiny of, and evolving expectations for, sustainability initiatives' as a risk, no concrete actions or metrics are disclosed.
Restructuring charges, including $177 million in severance costs in Q2 2025, were incurred due to 'strategic changes in our global workforce in order to streamline our organization.' While aimed at efficiency, such large-scale workforce changes have a direct social impact on employees.
Multiple lawsuits, including the 'Baker Action' and 'NYCERS Action,' allege breaches of fiduciary duties by the Board of Directors and controlling stockholders in connection with the Skydance transaction. These legal challenges highlight potential governance concerns and external scrutiny of decision-making processes.
The company's advertising revenues in the TV Media segment decreased 4% in Q2 2025 and 13% for the six months, primarily reflecting a challenging linear advertising market and increased competition from new entrants in the digital advertising space. This indicates a persistent negative trend in a core market.
Overall revenues for the six months ended June 30, 2025, decreased 3%, largely due to the absence of the Super Bowl LVIII broadcast in Q1 2024, which CBS and Paramount+ had rights to on a rotational basis. This illustrates how major sports events significantly influence quarterly and semi-annual revenue comparisons.
New U.S. government tax legislation, enacted July 4, 2025, includes extensions of expired tax provisions and changes to interest deduction limitations and international tax provisions, with certain provisions effective in 2025. The company is evaluating the impact, signaling an evolving regulatory environment that could affect future financial results.