Paramount Global (PARA) has disclosed that its net loss for the second quarter has significantly increased to $5.41 billion, or $8.12 per share, up from last year's $299 million, or $0.48 per share. This surge in loss is primarily due to a $5.98 billion goodwill impairment charge related to its Cable Networks division, along with a $15 million charge to lower the carrying values of FCC licenses in two markets to their estimated fair values. Additionally, the media giant plans to reduce its U.S. workforce by approximately 15%.
Looking forward, Paramount Global emphasized its commitment to executing its Strategic Plan. This plan aims to boost profitability by transforming its streaming services, streamlining its organizational structure to achieve at least $500 million in annualized cost savings, and fortifying its balance sheet by increasing free cash flow and optimizing its asset portfolio.
The company is on track to achieve domestic profitability for Paramount+ by 2025.
Adjusted earnings per share from continuing operations for Q2 were $0.54, up from $0.10 in the previous year. This exceeded analysts' expectations, who had forecasted $0.12 per share for the quarter, according to Thomson Reuters. It should be noted that analysts' estimates typically exclude special items.
Revenue for the second quarter dipped to $6.81 billion, down from $7.62 billion in the same period last year. Analysts had predicted revenues of $7.21 billion for the quarter.
In a significant development last month, Paramount Global and Skydance Media, founded by David Ellison, son of Oracle's Larry Ellison, announced an all-stock merger transaction to form New Paramount, with an enterprise value of approximately $28 billion.
On Thursday, PARA's stock closed at $10.21, down by $0.25 or 2.39%. However, in after-hours trading, the stock rose by $0.55 or 5.39%.
