Paramount Q1 Net Rises to $168M; Streaming EBITDA Hits $251M
PSKY•Paramount reported Q1 net earnings of $168 million on $7.35 billion revenue, beating estimates of $152 million and $7.28 billion with 23 cents in adjusted EPS versus 15 cents. Its direct-to-consumer unit generated $2.4 billion in sales, flipped to $251 million adjusted EBITDA, and added 700,000 Paramount+ subscribers.
1. Q1 Financial Performance
Paramount reported first-quarter net earnings of $168 million, up from $152 million a year earlier, on $7.35 billion in revenue versus analyst projections of $7.28 billion; adjusted EPS was 23 cents, surpassing the estimated 15 cents.
2. Streaming and DTC Growth
The direct-to-consumer unit generated $2.4 billion in revenue, an 11% year-over-year increase, flipped to $251 million in adjusted EBITDA from a $4 million loss, and added 700,000 net Paramount+ subscribers to reach 79.6 million.
3. Film and TV Media Segments
The film division posted $1.28 billion in theatrical revenue, marking an 11% gain driven by releases like Scream 7, while traditional TV business saw revenue decline 6% to $3.67 billion but boosted adjusted EBITDA 11% with margins climbing to 29%.
4. Warner Bros. Discovery Merger
Paramount secured shareholder approval for its Warner Bros. Discovery merger, targeting a third-quarter close, arranged $10 billion in long-term debt and $49 billion in bridge financing, and drew $2.15 billion to cover a $2.8 billion termination fee, with over $3 billion in cost savings planned by 2027.
