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(Sharecast News) - Shares in Paramount Skydance sparked on Tuesday, after the US entertainment firm forecast annual revenues of $30bn on the back of strong demand for its streaming services.
Posting third-quarter results - the first since the company's $8.4bn merger completed in August - Paramount Skydance forecast annual revenues of $30bn for 2026.
It said growth would be driven by a "healthy acceleration" in direct-to-consumer revenues. Scaling the DTC business globally is one of the group's core priorities post-merger, alongside investing in content and cutting costs.
The owner of Paramount+, CBS, Nickelodeon, MTV and Comedy Central, among others, is also now targeting run-rate efficiencies of at least $3bn, up from initial guidance for $1.5bn.
As at 1400 GMT, the Nasdaq-listed stock had gained 5% in pre-market trading.
Chief executive David Ellison - son of Oracle founder Larry - said in a letter to shareholders: "Our industry is undergoing a generational transformation and we are determined not only to adapt but to led.
"Our vision is to transform Paramount into the global home of world-class storytelling, powered by one of the industry's most storied studios, the leading broadcast network and a global, scaled streaming platform that delivers must-watch programming."
Revenues in the three months to September end came in at $6.7bn, narrowly missing Wall Street forecasts for $6.97bn.
Streaming revenues grew by 17% year-on-year, largely due to growth at Paramount+. But television revenues were hit by weaker advertising spend, falling 12%. Film revenues jumped 30%.
Skydance Media, which was founded by Ellison in 2006, and Paramount Global first announced plans to merge in July 2024.
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