Paramount Global’s stock went up by 6% before the market opened on Friday. The company made a profit in its streaming division for the first time, but its TV business slowed down more than expected. They plan to lay off 15% of their US employees soon. Paramount is preparing to merge with Skydance Media next year. In the second quarter, their streaming segment’s income improved by $450 million. The company’s earnings exceeded analysts’ expectations at $0.54 per share. Revenue was below estimates at $6.81 billion. Paramount+ lost 2.8 million subscribers but saw a 26% increase in revenue per user. Despite a profit in the streaming segment, the division is still operating at a loss. The company noted challenges in the film division due to release timing. Skydance’s takeover of Paramount is expected soon. The new leadership team plans to cut costs and improve profitability. Investors responded positively, with shares rising 5% after hours.
Vocabulary List:
- Profit /ˈprɒfɪt/ (noun): Financial gain especially the difference between the amount earned and the amount spent.
- Segment /ˈsɛɡmənt/ (noun): A part or section of a larger whole.
- Exceed /ɪkˈsiːd/ (verb): To go beyond a limit or standard.
- Merger /ˈmɜːrdʒər/ (noun): The combination of two or more entities into one.
- Challenges /ˈtʃælɪndʒɪz/ (noun): Difficulties that require a solution or effort to overcome.
- Profitability /ˌprɒfɪtəˈbɪləti/ (noun): The degree to which a business or activity yields profit or financial gain.
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