The Paramount Global merger with Skydance Media is still expected to close in the first half of the year, the company’s co-heads said as they reported Q1 earnings on Thursday.
Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins have been in a holding pattern for some time regarding the fate of their company and could not offer more insights.
Federal Communications Commission chair Brendan Carr is reviewing the transaction and reopened an investigation into Paramount Global’s CBS network concerning an interview it ran with then presidential hopeful Kamala Harris prior to the November election. That sparked a lawsuit from US president Donald Trump over how it was edited.
All eyes are on Paramount Global controlling shareholder Shari Redstone to see if she settles in order to push the $8bn Skydance deal over the finish line.
Meanwhile total revenue for the first quarter fell by 6% to $7.2bn to beat Wall Street forecasts. Adjusted earnings per share came in at 29 cents.
Solid streaming results saw revenue at the direct-to-consumer division, including the AVoD platform Pluto TV, grow by 9% to over $2bn. A 1.5m net add saw Paramount+ global subscribers reach 79m, reflecting an 11% year-on-year increase.
Subscription revenues climbed 16% year-on-year to $1.6bn. Advertising revenue fell 9% to $473m, “principally reflecting an 8% impact from the comparison against Super Bowl LVIII in the first quarter of 2024”. The platform is expected to reach profitability in the US by the end of 2025.
Pluto TV delivered its highest consumption by total hours both in the US and globally and the earnings report said it now reaches more countries than any other FAST service.
Filmed entertainment revenue increased 4% to $627m, while theatrical revenue fell 3% to $148m. Filmed Entertainment adjusted OIBDA increased $23m, driven by the continued success of Sonic The Hedgehog 3 and the number one North American debut of Novocaine. Executives said Gladiator II and Sonic The Hedgehog 3 were strong drivers on home entertainment.
TV Media revenues fell 13% to $4.5bn, including a 10% impact from the comparison against CBS’s broadcast of Super Bowl LVIII in the first quarter of 2024. Advertising revenue decreased 21% due to the Super Bowl and would have been flat without the Super Bowl comparison.
Executives reported that CBS is poised to become the most-watched network in primetime for the 17th season in a row, which is the longest winning streak on record. Including sports, CBS shows accounted for 15 of the top 25 programmes, such as Tracker and Matlock.
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