Skydance Reports $73 Million Profit in First Post-Merger Quarter

Skydance reported $7.03 billion in revenue and $73 million in net income for its third quarter, its first earnings report since completing the Warner Bros. Discovery merger. The results cover Skydance’s business before the deal closed in October, so they do not include Warner Bros. Discovery’s financial performance. The company said the quarter’s revenue increased 5% from a year earlier; net income was six cents per share.

The company’s direct-to-consumer business grew 11% to $2.5 billion in revenue, with a profit of $225 million. Studio revenue rose 23% to $1.5 billion, reflecting licensing and production work for third parties. Those gains were offset by continued weakness in traditional television: revenue fell 7% to $3 billion, including an 8% decline in advertising and a 5% drop in distribution and affiliate revenue. The TV unit reported a profit of $1 billion.

Skydance said it expects at least $6 billion in annualized cost savings, or run-rate synergies, within three years, while continuing to invest in the business. The company’s plans include reducing overlapping corporate functions and coordinating technology, marketing and purchasing. It also said it expects to spend...