Paramount Skydance reported a sharp rise in first-quarter profit, driven by cost-cutting efforts and strong growth in its streaming and studio businesses, offsetting declines in traditional television operations.
Key highlights
- Q1 EBITDA jumps 59% on cost-cutting and merger synergies
- Streaming revenue rises 11%, boosting overall performance
- Paramount+ subscribers reach 79.6 million
- Q2 revenue forecast misses Wall Street expectations
- Shares rise in after-hours trading
Cost efficiencies and merger boost earnings
The company’s first-quarter adjusted EBITDA rose 59% year-on-year to $1.16 billion, supported by operational streamlining following its merger initiatives.
Revenue increased modestly by 2% to $7.35 billion, reflecting steady performance across key segments.
CEO David Ellison said the company continues to progress through international regulatory approvals tied to its $110 billion deal to acquire Warner Bros Discovery.
Streaming growth offsets TV weakness
Streaming remained a key growth driver, with revenue rising 11% during the quarter.
The company’s flagship platform, Paramount+, saw subscribers climb to 79.6 million, aided by new content offerings including UFC programming.
However, management expects subscriber growth to remain flat in the second quarter due to the exit of around 2 million bundled international users.
Content pipeline weighs on near-term outlook
Despite strong Q1 performance, the company issued a weaker-than-expected revenue forecast for the second quarter.
Paramount expects revenue between $6.75 billion and $6.95 billion, below analyst estimates, citing the absence of major releases like Mission: Impossible – The Final Reckoning and major sports events such as the NCAA Final Four.
Platform consolidation strategy underway
The company plans to merge its streaming services, Paramount+, Pluto TV, and BET+, into a single unified platform by mid-year to enhance user experience and operational efficiency.
Stock reaction and earnings beat
Shares of Paramount Skydance rose 2.3% in extended trading following the results.
Adjusted earnings came in at 23 cents per share, beating analyst expectations of 15 cents.
What comes next
Investors will watch how the company executes its streaming consolidation strategy and navigates near-term revenue pressures from a lighter content slate.
Progress on the Warner Bros Discovery acquisition and regulatory approvals will also remain a key focus.
FAQs
Q1: Why did Paramount Skydance’s profit increase?
Profit rose due to cost-cutting measures and strong growth in streaming and studio operations.
Q2: How did streaming perform?
Streaming revenue increased 11%, with Paramount+ subscribers reaching 79.6 million.
Q3: Why is the Q2 outlook weaker?
The company cited a lack of major film releases and sports events in the upcoming quarter.
Q4: What is the company’s streaming strategy?
It plans to combine Paramount+, Pluto TV, and BET+ into a single platform.
Q5: Did the company beat expectations?
Yes, earnings per share came in above analyst estimates.
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