Paramount Global Q2 Loss Widens, Plans To Cut About 15% Of Jobs

(RTTNews) - Paramount Global (PARA) reported that its second quarter net loss attributable to the company widened to $5.41 billion or $8.12 per share from last year's $299 million or $0.48 per share, reflecting a goodwill impairment charge for its Cable Networks reporting unit of $5.98 billion, as well as a charge of $15 million to reduce the carrying values of FCC licenses in two markets to their estimated fair values. The media company reportedly plans to reduce its U.S.-based workforce by approximately 15%.

Looking ahead, the company said it will diligently pursue its Strategic Plan, which aims to enhance profitability through transforming streaming, streamline its organization to achieve at least $500 million in annualized cost savings, and strengthen its balance sheet by increasing free cash flow and optimizing its asset portfolio.

The company said it is on track to reach domestic profitability for Paramount+ in 2025.

Adjusted earnings per share from continuing operations for the second quarter was $0.54 compared to $0.10 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter declined to $6.81 billion from $7.62 billion in the prior year. Analysts expected revenue of $7.21 billion for the quarter.

Last month, Paramount Global and Skydance Media, founded by David Ellison, son of Oracle founder Larry Ellison, announced their agreement to merge in an all-stock transaction, to form New Paramount at an enterprise value of around $28 billion.

PARA closed Thursday's regular trading at $10.21 down $0.25 or 2.39%. But in the after-hours trading, the stock gained $0.55 or 5.39%.

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