Paramount Making “Great Progress” on Warner Bros. Buy, Reaffirms Deal Close Timing

David Ellison Photo by Noam Galai/Getty Images for Paramount

Paramount reported year-over-year growth in both revenue and adjusted EBITDA as CEO David Ellison and his team seek to remake the company they acquired late last summer. At the same time, the company also says that it is “making great progress” on its deal to acquire Warner Bros. Discovery, with a late Q3 target close still on track.

Paramount reported its Q1 earnings Monday, with revenue of $7.35 billion, up 2 percent year-over-year, operating income of $616 million, an operating margin of 8.4 percent, and adjusted EBITDA of $1.16 billion, up 59 percent year-over-year.

Paramount+ was the big driver, with 17 percent growth year-over-year and subscribers growing by 700,000 even after accounting for a one million hit from the loss of a hard bundle. Overall DTC revenue was $2.4 billion.

Paramount, of course, is reporting earnings in a moment of transition.

Even though Ellison and his team only took over Paramount less than a year ago, they have a deal to acquire Warner Bros. Discovery and are telling the street that they expect to close this year, effectively turning them into an entertainment behemoth.

Of course, customary rules mean that Paramount executives are limited in engaging with WBD about future plans, so Paramount needs to continue with its strategy, even as it plans separately for a future combined with WBD.

More to come.