Paramount Skydance Reports First Results Since Warner Bros. Discovery Deal

Paramount Skydance reported its third-quarter results on Monday, 9 November, its first quarterly report since completing its $81 billion acquisition of Warner Bros. Discovery on 6 October. On its own, the company brought in about $7 billion in revenue, according to Deadline.

Most of the Warner Bros. Discovery figures will not be folded into the company's numbers until early next year, because the deal closed in the fourth quarter. Until then, the results cover the Paramount side of the business.

Streaming was the standout. Paramount+ revenue grew 21% in the quarter, its fastest growth this year. Average revenue per user, or ARPU, the amount each subscriber pays on average, rose about 14%. The company's direct-to-consumer business, which covers streaming, brought in $2.5 billion, up 11%, and made a profit of $225 million.

Studios revenue rose 23% to $1.5 billion, with a profit of $129 million. The television arm, labelled TV Media, saw revenue fall 7% to $3 billion. Advertising dropped 8% and affiliate fees, the payments cable and satellite providers make to carry channels, fell 5%. Even so, TV Media reported a profit of $1 billion and a 34% adjusted EBITDA margin. That measure is operating profit before certain costs, shown as a share of revenue.

The company also set out its plans for the combined business. It is targeting at least $6 billion in synergies, the savings that come from merging two operations, within three years. It wants to bring its net leverage ratio, which compares debt with earnings, down to 3.0 times by the end of 2029, and to reach investment-grade credit metrics, the markers that point to a safer borrowing rating.

Paramount Skydance plans to launch a bundle of HBO Max and Paramount+ in early 2027. Subscribers would get both services in one package.

The merged company begins with more than $80 billion in debt. It is led by David Ellison and co-CEO Ynon Kreiz, and expects combined annual revenue of $70 billion. It is targeting $30 billion in combined content spending and says it has more than 200 million streaming subscribers, figures also reported by Deadline.

For moviegoers, the most concrete change may come from the deal's legal settlement. State attorneys general had sued to block the merger. Skydance has committed to releasing 30 films a year, rising to 32, over a five-year settlement period. That gives cinemas a steady supply of Paramount titles to plan around.

Paramount Skydance trades on the Nasdaq under the ticker PSKY. Its first post-merger quarter is now on the record, and the next report will show the first hints of how the two companies look together.