Paramount Skydance's Strong First Quarter Performance and Expansion Plans
Paramount Skydance exceeded Wall Street's expectations in the first quarter, driven by strong performance in its streaming and film divisions. The company reported a total revenue of nearly $7.35 billion, with the streaming unit contributing significantly to the growth. Paramount+ saw a 17% increase in revenue and added 700,000 subscribers during the quarter, bringing its total subscriber base to nearly 80 million.
The film studio revenue also saw a notable 11% increase, with the success of "Scream 7" contributing to the growth. Paramount has expanded its film slate for 2026 following the merger with Skydance, which has allowed for increased production and revenue opportunities. However, the TV media business, including networks like CBS, Nickelodeon, and MTV, faced challenges due to cord-cutting trends, resulting in a 6% decline in revenue.
Paramount Skydance reported first-quarter net earnings of $168 million, or 15 cents per share, with adjusted earnings per share of 23 cents. The company reaffirmed its full-year outlook of $30 billion in revenue and $3.8 billion in adjusted earnings before interest, taxes, depreciation, and amortization. The merger with Skydance has positioned Paramount for further growth, with a proposed acquisition of Warner Bros. Discovery expected to close by the end of the third quarter.
The acquisition of Warner Bros. Discovery, valued at $31 per share in cash, has received shareholder approval and is undergoing regulatory review. Paramount Skydance is securing debt and equity commitments for the deal, which is a significant strategic move for the company's expansion in the media industry.