Paramount reported mixed second-quarter earnings Tuesday as its takeover of Warner Bros. Discovery remains in limbo.

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Still, CEO David Ellison sought to reassure shareholders in the letter saying, “We continue to prepare for our proposed combination with Warner Bros. Discovery, while staying focused on executing our standalone strategy and delivering strong results.”

The company reported revenues of $6.9 billion, up 1 percent from its predecessor company a year ago, while net earnings fell to $41 million, or four cents per share after $57 million, or eight cents a share, a year ago.

Paramount’s TV media segment, which includes CBS and its cable networks, continued to fall, dropping 9 percent year-over-year to $3.1 billion, while direct-to-consumer revenue rose 9 percent to $2.5 billion. Studio revenue rose 16 percent to $1.3 billion, thanks to content licensing deals and TV production arm as well as the success of Scary Movie.

Revenue at Paramount+ rose 16 percent to $2.1 billion, as the company said Q2 was its best quarter for retention ever on Paramount+ thanks to Dutton Ranch, UFC and the FIFA World Cup. The streaming services added 2 million new subscribers to hit 81.6 million worldwide, up 6 percent year over year. 

Paramount is raising its full-year outlook range to $3.8 billion to $3.9 billion in adjusted EBITDA and now expects free cash flow conversion of at least 10 percent. The company added that it had seen “double-digit growth in commitments” across the company after its Upfronts presentation, but did release further specifics.

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“We continue to make progress on our transformation at Paramount, and we now expect to deliver over $2.7 billion of run-rate efficiencies by the end of 2026 versus $2.5 billion previously, and continue to expect $3 billion-plus in efficiencies from the Skydance-Paramount combination,” the letter continues.

Paramount won the bidding war for Warner Bros. Discovery in February with its $111 billion offer, after Netflix declined to raise its offer. But the merger is currently on pause, as Paramount has since been hit with several lawsuits, including from 12 state attorneys general who claim the acquisition will kill competition in the film and television industries. The company has agreed to delay the billion takeover of Warner Bros. Discovery until June 1, 2027, or until the antitrust lawsuits brought by state attorneys general are resolved. Ellison has told staff he remains “highly confident” in the completion of the merger. 

The earnings also come the same day that an op-ed from Ellison appeared in The New York Times, in which the executive argued that his political leanings and proposed takeover of CNN are the root cause of the lawsuits filed by a dozen state attorneys general and the Writers Guild of America.

“I believe this fight is not really about market share … I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner’s CNN. There has been speculation about my politics, my loyalties, my intentions,” Ellison wrote. “Unfortunately, I can’t give anyone a view into my heart and mind, but I can share this: I have regularly voted for candidates of both parties; I hold some views that would be called conservative and others that would be called liberal, just like most Americans; and when it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth.”

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More to come.