Financial Data and Key Metrics Changes - Paramount generated total company revenue of $6.8 billion, reflecting a 1% year-over-year growth [20] - Adjusted OIBDA was $824 million, showing continued year-over-year improvement in the direct-to-consumer segment [20] - Direct-to-consumer segment generated revenue of $2.2 billion, growing 15% year-over-year despite a 4% decline in DTC advertising [21][20] Business Line Data and Key Metrics Changes - Paramount Plus finished the quarter with 77.7 million subscribers, a year-over-year increase of 9.3 million subscribers, but down 1.3 million from Q1 2025 [21] - Paramount Plus revenue increased nearly $330 million versus Q2 2024, driven by a 22% growth in subscription revenue [21] - Filmed Entertainment segment generated revenue of $690 million, up 2% year-over-year, but adjusted OIBDA was a loss of $84 million [24] Market Data and Key Metrics Changes - CBS continued its leadership position as the most-watched broadcast network in primetime for the seventeenth consecutive season, with eight of the top 10 series [14] - Streaming of CBS series on Paramount Plus grew 42% over the last year, accounting for nearly half of all viewing on Paramount Plus [18] Company Strategy and Development Direction - The company aims to transform into a streaming-first company, with a focus on delivering original hits rather than a high volume of originals [11][12] - The strategy has led to a significant improvement in D2C profitability, with a $300 million improvement compared to the previous year [16] - The upcoming Skydance transaction is expected to close on August 7, 2025, marking a significant transition for the company [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong foundation for success and long-term value creation despite industry challenges [6] - The company is well-positioned to thrive in the streaming future, as evidenced by the growth in D2C revenue outpacing linear declines [11] - Management highlighted the importance of content and the successful monetization of franchises across various platforms [19] Other Important Information - The company has implemented over $800 million in annual run rate non-content expense savings over the past four quarters [15] - The combination of traditional and streaming businesses yielded net positive growth, with total company affiliate and subscription revenue up 5% in Q2 [24] Summary of Q&A Session - No questions were taken during this earnings call, as it was the last call under the current corporate structure [3]

Core Insights - Paramount Global reported significant financial improvements, including an 84% increase in theatrical revenue driven by "Mission: Impossible – The Final Reckoning," which grossed nearly $600 million globally [1] - The company experienced a 1% increase in total revenue to $6.85 billion, with direct-to-consumer (DTC) growth outpacing linear revenue declines [3] - Paramount+ ended the quarter with 77.7 million subscribers, reflecting a decrease of 1.3 million due to the expiration of an international hard bundle deal [4] Financial Performance - Theatrical revenue surged by 84% due to the success of "Mission: Impossible – The Final Reckoning" [1] - Total company revenue increased by 1% to $6.85 billion, with DTC profits showing a $131 million year-over-year improvement to $157 million [3] - The company achieved a profit of $57 million, a significant turnaround from a $5.4 billion loss in the same quarter last year [3] Streaming and Content Growth - Paramount+ saw strong subscription revenue growth, contributing to a 5% increase in affiliate and subscription revenue across the company [3] - The platform experienced a 26% increase in viewership compared to the first half of 2024, with CBS content driving nearly half of all viewing on Paramount+ [7] - Paramount+ had the most Top 10 SVOD Originals, ranking just behind the market leader [7] Merger and Leadership Changes - Paramount's merger with Skydance, valued at $8.4 billion, was approved by the FCC, with a planned closing date of August 7 [4] - The value of Paramount Class B shares in the merger agreement is set at $15, although shares have not traded at that level historically [8] - Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins are expected to see leadership changes post-merger, with Cheeks remaining in the new company [9]