Companies Report Strong Q1 Earnings; Paramount Advances Warner Bros. Discovery Merger

Multiple companies released first-quarter earnings on Monday, showcasing growth despite economic challenges. 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. These developments build on Grab's expansion in ride-sharing, food delivery, and fintech across the region.

Paramount's revenue grew 2% year-over-year, reaching $7.3 billion for the January-March period. Adjusted EBITDA hit $1.1 billion, driven by a 17% increase in streaming revenue to nearly $2 billion from Paramount+. The service added 700,000 subscribers, totaling nearly 80 million.

The company reported net earnings of $168 million, or 15 cents per share, up from $152 million the previous year. Studio revenue climbed 11% to $1.28 billion, bolstered by successes like "Scream 7," which grossed over $200 million globally. Television networks revenue fell 6% to $3.7 billion due to cord-cutting trends.

Paramount executives projected full-year revenue of $30 billion and adjusted EBITDA of $3.8 billion. They also outlined cost cuts of $2.5 billion this year and $3 billion in 2027. The firm ended the quarter with $1.9 billion in cash and $15.5 billion in debt, having drawn $2.15 billion from credit facilities to cover a $2.8 billion termination fee related to a prior Warner Bros.

Discovery deal with Netflix.

“The two companies are actually making 30 films to date. We really view our pending acquisition of Warner Bros. Discovery, expected to close by September. The deal would combine Paramount's 15 annual films with Warner's matching output, supporting a goal of 30 theatrical releases per year. The merged entity would control assets like CBS, CNN, Comedy Central, Food Network, HGTV, and franchises including "Harry Potter," "Game of Thrones," "Yellowstone," and "Landman." The acquisition would burden the combined company with $79 billion in debt, prompting plans for steep cost reductions. Paramount has secured bridge financing and seeks FCC approval to exceed foreign ownership caps, with $24 billion in funding from Middle Eastern investors representing 49% equity. Warner Bros. Discovery shareholders approved the deal last month, offering $31 per share. However, opposition has mounted, with over 4,000 filmmakers, actors, and industry workers signing letters urging regulators to block it over competition concerns. Signatories include Bryan Cranston, Connie Britton, Kristen Stewart, Jonathan Glazer, and Jane Fonda. A consumer lawsuit filed last week aims to halt the merger and unwind Skydance's prior takeover of Paramount, alleging reduced marketplace competition. Paramount stated the regulatory process is underway in the U.S. and abroad.”

This uplift reflects broader positive trends in banking amid economic shifts. Grab's CFO noted that fuel price hikes from the Iran conflict have not impacted demand yet. The company continues to innovate in financial services, aligning with its growth trajectory.

" The company's shares closed at $11.13 on Monday, largely unchanged.