Paramount Skydance has lifted its full-year profit outlook after streaming growth and aggressive cost-cutting helped offset another sharp decline across its traditional television business.

The US entertainment giant reported second-quarter revenue of US$6.91 billion, up 1% year-on-year and slightly ahead of market expectations.

Adjusted earnings before interest, tax, depreciation and amortisation climbed 27% to US$1.1 billion, although statutory net earnings fell to US$41 million, or US$0.04 per share, from US$57 million a year earlier.

Paramount has now achieved more than US$2.7 billion in annual savings following last year’s merger with Skydance Media, putting it close to its US$3 billion cost-cutting target.

The savings drive has renewed questions over the future of Paramount-owned Network Ten, which is facing falling audiences, weaker advertising revenue and further cuts across its news and entertainment operations.

ChannelNews recently revealed that Paramount is open to selling the struggling Australian broadcaster, with a streaming-linked network understood to be examining the business as the US media giant reviews non-core assets.

Paramount Skydance raised its 2026 adjusted EBITDA forecast to between US$3.8 billion and US$3.9 billion while maintaining its full-year revenue target of US$30 billion.

Streaming remained the standout performer, with direct-to-consumer revenue rising 9% to US$2.47 billion.

Paramount+ added two million subscribers during the quarter, taking its global customer base to 81.6 million. Streaming profit jumped 44% to US$366 million.

The company’s film studio division increased revenue by 16% to US$1.31 billion and returned to profit as licensing sales to platforms including Netflix and Amazon Prime Video increased.

However, revenue from CBS and Paramount’s cable networks, including Nickelodeon and Comedy Central, declined 9% to US$3.13 billion. Advertising revenue across the division fell 14%.

The results come as Paramount works to complete its proposed US$110 billion acquisition of Warner Bros. Discovery.

The deal has been delayed by an antitrust lawsuit brought by California and 11 other US states, with a trial now scheduled for March 2027.

Paramount chief executive David Ellison said the company remained confident the transaction would close. However, delays beyond September 30 could leave Paramount facing fees of about US$7 million a day, potentially reaching US$1.7 billion if the deal remains stalled until June 2027.

The decline across Paramount’s traditional television operations mirrors the pressure facing Ten in Australia, where its national audience has fallen sharply and its share of the shrinking free-to-air advertising market has slipped.

Ten has already axed its short-lived current affairs program 10 News+, while reports suggest hundreds of jobs could be cut across its news, current affairs and sales divisions.

Paramount has previously sold free-to-air broadcasters in Argentina and Chile after classifying them as non-core assets, adding to speculation that Ten could be next.