Paramount Skydance Posts $73 Million in Third-Quarter Income

Paramount Skydance reported third-quarter net income of $73 million, or 6 cents per share, on revenue of $7.03 billion. Adjusted earnings were 45 cents per share, above the 18-cent average analyst estimate. Revenue fell short of the $7.07 billion forecast cited by analysts. The results were released on November 9 in the company’s first quarterly report since its $81 billion acquisition of Warner Bros. Discovery closed on October 6.

Because the deal closed in the current quarter, the third-quarter figures do not yet combine Paramount Skydance and Warner Bros. Discovery. The company said it aims to achieve at least $6 billion in synergies within three years, reduce its net leverage ratio to 3.0 times by the end of 2029 and reach investment-grade credit metrics. It also plans to offer HBO Max and Paramount+ as a bundle in early 2027.

At Paramount Skydance, direct-to-consumer revenue rose 11% to $2.5 billion, with Paramount+ revenue up 21%; the segment generated $225 million in profit. Studios revenue increased 23% to $1.5 billion, while TV Media revenue fell 7% to $3 billion. Advertising declined 8% and affiliate revenue dropped 5%. TV Media profit was $1 billion.

The combined company has said it expects annual revenue of $70 billion and launches with more than $80 billion in debt. Analysts have raised concerns about leverage and the challenge of integrating the businesses, while others see scale in content as a major advantage. Paramount Skydance has also committed to releasing 30 films annually, rising to 32, under a five-year settlement with state attorneys general. It plans to spend $30 billion on content across the combined company and has announced leadership changes since the deal closed.