Original Coverage & Source Attribution: www.proactiveinvestors.com
Paramount Skydance Corp (NASDAQ:PSKY), the media and entertainment group, increased third-quarter revenue by 5% to $7.0 billion as growth in streaming and studios offset weakness in traditional television.
Net earnings attributable to the parent reached $73 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $1.0 billion, representing a 14.2% margin.
Operating income was $368 million, including $187 million of restructuring and transaction-related costs, giving an operating margin of 5.2%.
Direct-to-consumer revenue increased 11% to $2.5 billion, led by 21% growth in Paramount+ revenue.
Paramount+ subscribers increased approximately 6%, while average revenue per user (ARPU), which measures income generated per subscriber, rose around 14%.
The generated adjusted EBITDA of $225 million, equivalent to a 9% margin, as higher programming investment in UFC and original productions increased costs.
Studios revenue climbed 23% to $1.5 billion, supported by stronger secondary-market licensing and content produced for third-party distributors.
Studios adjusted EBITDA reached $129 million, an 8.6% margin, reflecting higher licensing revenue.
Traditional television operations remained weaker, with TV Media revenue falling 7% to $3.0 billion.
Advertising revenue declined 8%, partly reflecting the disposal of Telefe and Chilevisión, while affiliate revenue fell 5% as pay television subscriber numbers continued to erode.
Higher political advertising revenue partly offset those pressures, while cost-saving initiatives helped TV Media generate $1.0 billion in adjusted EBITDA, representing a 34% margin.
Free cash flow was $31 million, including $174 million of restructuring, transaction-related and transformation costs.
At September 30, before completing its on October 6, Paramount Skydance held $1.4 billion in cash and cash equivalents against $15.0 billion in gross debt.
The company remained on track to achieve the upper end of its previous 2026 profitability outlook of $3.9 billion in adjusted EBITDA.
The third-quarter figures exclude Warner Bros Discovery, which will be incorporated into Skydance’s financial results from October 6.
