PARAMOUNT REPORTS Q2 2025 EARNINGS RESULTS
Continued Progress Transforming to a Streaming First Company with DTC Revenue Growth Outpacing Linear Declines
▪ Total Company Revenue Grew 1% Year-over-Year
▪ Affiliate & Subscription Revenue Growth Accelerated to 5%, Driven by Strong Growth in Paramount+ Subscription Revenue
▪ Generated $159 million of Net Operating Cash Flow and $114 million of Free Cash Flow
DTC Continued Strong Momentum Driven by Consistent Performance at Paramount+
▪ DTC Revenue Growth Continued to Accelerate to 15%–Driven by Paramount+ with Total Revenue up 23% Year-over-Year, and Strong Subscription Revenue Growth of 24%
▪ DTC Generated $157 million in Adjusted OIBDA, an Improvement of $131 million Year-over-Year
▪ Paramount+ Saw Continued Improvement in Watch Time and Churn–For the 3rd Consecutive Quarter, Watch Time per Subscriber Increased Year-over-Year, Up 11% in Q2–Churn Improved 70 bps, Achieving a Record Low
Powerful Slate of Hit TV Series, Films & Sports Fueled Strong Content Performance
▪ Paramount+ Scores Again with the Most Top 10 SVOD Originals for First Half of 2025, behind only the Market Leader
▪ CBS Again was the Most Watched Broadcast Network in Primetime for the 17th Consecutive Season
▪ Franchise Record Achieved for Paramount Pictures’ Mission: Impossible — The Final Reckoning with Biggest Global Opening
Skydance Transactions Expected to Close on August 7, 2025
STATEMENT FROM SHARI REDSTONE, NON-EXECUTIVE CHAIR
"Over many years, Paramount established itself as an enduring industry leader in media, news, and entertainment. Despite an increasingly challenging environment, the talented co-CEOs and teams across the Company have continued to strengthen and grow the business. As a testament to their success and driven by the power of exceptional content, we have seen the impressive growth of Paramount+, the ongoing leadership of CBS, and the continued stream of franchise growth at Paramount Pictures. At the same time, substantial progress has been made in streamlining the Company’s cost structure. I am proud that when the Skydance transactions close we will be turning over a healthy business with a strong foundation for long-term growth and value creation. I will be forever grateful to the people of the Company and the shareholders who have supported us"
STATEMENT FROM GEORGE CHEEKS, CHRIS McCARTHY AND BRIAN ROBBINS, CO-CEOs
"Our goal when we became co-CEOs was to transform Paramount into a streaming first company and today we are substantially better positioned with streaming revenue growth outpacing linear declines, driven by exceptional performance at Paramount+. We saw the largest viewership growth among all subscription services in the US, up 26% vs. the first half of 2024, driven by continued strong content at
Paramount+ where we again had the most Top 10 SVOD Originals, behind only the market leader, and churn achieved a record low. CBS content drove nearly half of all viewing on Paramount+ and ranked as the most watched broadcast network for the 17th consecutive season. These impressive results are thanks to our talented teams and creative partners for whom we are very grateful for their continued creativity, dedication and hard work."
DIRECT-TO-CONSUMER
OVERVIEW
Demonstrating the strength of our differentiated strategy of delivering fewer, bigger, breakthrough hits, DTC delivered another quarter of notable revenue growth and improved profitability. Year-to-date in the U.S., Paramount+ had the most top 10 SVOD Originals, behind only the market leader, thanks to the enduring success of
Landman and
1923. In Q2,
MobLand became the #2 Original Series ever on Paramount+ with
more than 26 million global viewers for its premiere episode, ranking among the Top
10 SVOD Original Series for eight consecutive weeks. On the Paramount+ Premium tier,
The Chi returned for its seventh season, scoring
2 million cross-platform viewers for its premiere, the most-streamed premiere in series history. Pluto TV delivered its highest consumption by total hours both domestically and globally and reaches more countries than any other FAST service.
Q2 FINANCIALS
▪ DTC revenue increased 15% year-over-year.
– DTC subscription revenue grew 22%, driven by subscriber growth and pricing increases for Paramount+.
– DTC advertising revenue decreased 4%, reflecting the impact of lower CPMs and growing Connected TV supply.
◦ Global viewing hours increased 29% year-over-year across Paramount+ and Pluto TV.
– Paramount+ revenue grew 23%, driven by year-over-year subscriber growth, pricing increases, and improvements in churn.
◦ As of June 30, 2025, Paramount+ reached 77.7 million subscribers, a decrease of 1.3 million in the quarter, primarily reflecting the expiration of an international hard bundle deal.
◦ Global ARPU grew 9% year-over-year.
◦ Global watch time per subscriber increased 11% year-over-year.
▪ DTC adjusted OIBDA improved $131 million year-over-year, reflecting the revenue growth, partially offset by higher costs.
TV MEDIA
OVERVIEW
CBS secured its leadership position as the most watched broadcast network in primetime for the 17th consecutive season, the longest winning streak on record. The network had 14 of the top 20 series, more than all other networks combined, led by
Tracker, the #1 series, and
Matlock, the #1 new series. Our live sports portfolio continued to deliver audiences at scale, as evidenced by the
NCAA Men’s Basketball Championship, which featured the most watched Final Four in eight years and most watched Championship Final in six years, as well as CBS Sports’ golf coverage, which is up 13% year-over-year, its best performance in seven years.
The Daily Show ranked as the #1 Late Night program on Mondays across all TV.
Q2 FINANCIALS
▪ TV Media revenue decreased 6% to $4.0 billion.
–Advertising revenue decreased 4%.
–Affiliate and subscription revenue decreased 7%, reflecting linear subscriber declines.
–Licensing and other revenue decreased 9%, primarily from the timing of content produced for third parties.
▪ TV Media adjusted OIBDA decreased 15%, reflecting the lower revenue, partially offset by lower costs.
FILMED ENTERTAINMENT
OVERVIEW
Paramount Pictures’ franchise-focused strategy drove another quarter of revenue growth, bolstered by the global premiere of Mission: Impossible – The Final Reckoning, which set a franchise record for the biggest global opening in theaters. The final installment in the powerhouse franchise has earned over $590 million at the global box office to-date and will drive further value for the Mission: Impossible catalogue and Paramount’s library of iconic and timeless IP.
Q2 FINANCIALS
▪ Filmed Entertainment revenue increased 2% to $690 million.
– Theatrical revenue increased 84% to $254 million, reflecting the second quarter release of Mission: Impossible – The Final Reckoning.
– Licensing and other revenue decreased 19%, driven primarily by lower licensing of animated content.
▪ Filmed Entertainment adjusted OIBDA decreased $30 million, primarily reflecting lower profits from licensing.
SKYDANCE TRANSACTIONS
All regulatory approvals for the Skydance Transactions (the “Transactions”) have been satisfied. The Transactions are
anticipated to close on August 7, 2025, subject to customary closing conditions.
ABOUT PARAMOUNT
Paramount (NASDAQ: PARA; PARAA) is a leading global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. The company holds one of the industry’s most extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, Paramount provides powerful capabilities in production, distribution and advertising solutions.
For more information about Paramount, please visit
www.paramount.com and follow @ParamountCo on social platforms. PARA-IR
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This communication contains both historical and forward-looking statements, including statements related to our future results, performance and achievements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “likely,” “will,” “may,” “could,” “estimate” or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: risks related to our streaming business; the adverse impact on our advertising revenues as a result of changes in consumer behavior, advertising market conditions and deficiencies in audience measurement; risks related to operating in highly competitive and dynamic industries, including cost increases; the unpredictable nature of consumer behavior, as well as evolving technologies and distribution models; risks related to our decisions to make investments in new businesses, products, services and technologies, and the evolution of our business strategy; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; damage to our reputation or brands; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and content; liabilities related to discontinued operations and former businesses; increasing scrutiny of, and evolving expectations for, sustainability initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; domestic and global political, economic and regulatory factors affecting our businesses generally, including tariffs and other changes in trade policies; the inability to hire or retain key employees or secure creative talent; disruptions to our operations as a result of labor disputes; challenges realizing synergies and other anticipated benefits expected from the Transactions, including integrating the Companyʼs and Skydanceʼs businesses successfully; the dilution to the earnings per share of New Paramount which may negatively affect the price of New Paramount Class B Common Stock; any negative effects following the completion of the Transactions on the market price of New Paramount Class B Common Stock; the uncertainty of the Companyʼs stockholders with respect to the value of the stock consideration they will receive; the risks that holders of our Class B Common Stock may not receive all merger consideration in the form they elect; the reduced ownership and economic interest of our existing stockholders in New Paramount; the cutbacks the PIPE Transaction is subject to in the event that stock elections exceed specified thresholds; the risks that the Transactions may be prevented or delayed or the anticipated benefits of the Transactions could be reduced if we do not obtain certain regulatory approvals; the conditions to the closing to which the Transactions are subject; our and New Paramountʼs continued incurrence of significant transaction and merger-related transaction costs in connection with the Transactions; business uncertainties, including the effect of the Transactions on the Companyʼs employees, commercial partners, clients and customers, and contractual restrictions while the Transactions are pending; the Transaction Agreementʼs limitation on our ability to pursue alternatives to the Transactions; tax consequences of the Transactions that may adversely affect holders of our Common Stock; the imposition of a new U.S. federal excise tax on us or on New Paramount in connection with redemptions by us or New Paramount of our respective shares; interests of our executive officers, directors and affiliates of Paramount that are different from, or in addition to, the rights of our stockholders; risks related to a failure to complete the Transactions which could negatively impact our businesses or financial results and the stock price of our Common Stock; lawsuits relating to the Transactions potentially preventing or delaying the closing of the Transactions and/or resulting in substantial costs; the waiver of one or more of the conditions to closing without re-obtaining stockholder approval; difficulties retaining, motivating and recruiting executives and other key employees before and following the completion of the Transactions in light of uncertainty regarding the Transactions; the Transactions triggering change of control or other provisions in certain agreements which may allow third parties to terminate or alter existing contracts or relationships; our stockholders not being entitled to appraisal rights in connection with the Transactions; changes and uncertainties with respect to taxes in the jurisdictions in which New Paramount will operate which may have an adverse effect on New Paramountʼs business; volatility in the prices of our Common Stock; potential conflicts of interest arising from our ownership structure with a controlling stockholder; and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this report, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
Following the Paramount-Skydance merger, the new company is expected to be named Paramount Skydance Corp., and will use PSky on stock tickers.
