finance
Paramount Reports Q1 Earnings; David Ellison Reaffirms 30-Film Pledge for Warner Bros. Discovery Deal
Several companies, including Grab and Paramount, reported robust first-quarter earnings with revenue growth. Paramount highlighted progress on its acquisition of Warner Bros. Discovery, aiming for 30 films annually post-merger. An Italian bank also raised its annual guidance following revenue increases.
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Multiple companies released first-quarter earnings on Monday. Grab's performance came amid rising fuel prices linked to the Iran conflict, but demand remained unaffected, according to the company's chief financial officer. The firm plans to launch new banking products and expects to break even in its financial services unit by year-end.
Paramount reported revenue of $7.3 billion for the January-March period, up 2% year-over-year. Adjusted EBITDA reached $1.1 billion, driven by a 17% increase in streaming revenue to nearly $2 billion from Paramount+. The service added 700,000 subscribers, bringing the total to nearly 80 million.
The company posted net earnings of $168 million, or 15 cents per share, compared with $152 million the previous year. Studio revenue rose 11% to $1.28 billion, helped by the performance of "Scream 7," which grossed over $200 million globally. Revenue from television networks declined 6% to $3.7 billion.
Paramount executives projected full-year revenue of $30 billion and adjusted EBITDA of $3.8 billion. The company said it ended the quarter with $1.9 billion in cash and $15.5 billion in debt.
David Ellison underscored his pledge to make 30 films a year when his company buys Warner Bros. Discovery. According to the Los Angeles Times, Ellison highlighted that "the two companies are actually making 30 films to date" and that the pending acquisition would combine Paramount's output with Warner's to support a goal of 30 theatrical releases per year.
" Paramount has secured bridge financing for the deal, which Warner Bros. Discovery shareholders approved last month at $31 per share. The company is seeking FCC approval related to foreign ownership caps, with $24 billion in funding from Middle Eastern investors representing 49% equity.
Paramount stated that the regulatory process is underway in the U.S. and abroad. The company also outlined cost cuts of $2.5 billion this year and $3 billion in 2027. It drew $2.15 billion from credit facilities to cover a $2.8 billion termination fee related to a prior Warner Bros.
