Warner Bros. Discovery narrowed its profit in the second quarter, hurt by a large charge, as revenue fell.

The results come as Paramount's $81 billion deal to buy Warner faces legal challenges.

The company on Thursday posted a profit of $149 million, or 6 cents a share, compared with $1.58 billion, or 63 cents a share, a year earlier. Analysts polled by FactSet had expected a quarterly loss of 14 cents a share.

Warner said the recent quarter included a $1.1 billion worth of pre-tax acquisition-related amortization of intangibles, content fair value step-up, and restructuring expenses.

Total revenues fell 11% to $8.72 billion, missing Wall Street estimates for $9.25 billion.

Distribution revenue ticked up 1.3% to $4.95 billion. However, the gain was more than offset by advertising revenue, which fell 22% to $1.72 billion, and content revenue, which tumbled 26% to $1.83 billion.

Paramount will go to trial in March, months later than the November 2026 start date it had pushed for, to battle a lawsuit from California Attorney General Rob Bonta and 11 other states in an attempt to block the deal, claiming it is anticompetitive and bad for consumers.