Paramount Skydance has reported stronger-than-expected quarterly results as it pushes ahead with its planned takeover of Warner Bros. Discovery, a deal that is reshaping the global media landscape.

The entertainment group delivered adjusted earnings of about A$1.78 billion for the first quarter, comfortably ahead of market expectations of roughly A$1.37 billion. This marks a 59 per cent increase compared with the same period last year. Revenue reached approximately A$11.2 billion, broadly in line with forecasts.

The company has maintained its full-year outlook, projecting revenue of around A$46 billion and adjusted earnings of about A$5.8 billion, slightly above analyst estimates.

Momentum comes as Paramount moves closer to completing its A$169 billion acquisition of Warner Bros. Discovery. Shareholders in the target company approved the transaction last month, although the deal still requires regulatory clearance in several regions. Paramount has also sought approval for a funding structure that includes significant backing from Middle Eastern investors.

Photographer: Yuki Iwamura/Bloomberg via Getty Images

Chief executive David Ellison told investors the company remains focused on finalising the acquisition, which is expected to close in the third quarter. If delays extend beyond 30 September, Warner Bros. shareholders are set to receive additional payments per share until the deal is completed.

Despite the financial progress, the proposed merger has drawn criticism across the entertainment industry. Thousands of industry professionals have raised concerns about potential job losses, rising production costs and reduced creative diversity. Some politicians in the United States have also questioned the impact of the deal on competition.

Paramount’s streaming business showed mixed results during the quarter. Direct-to-consumer revenue climbed 11 per cent to around A$3.7 billion. Its Paramount+ platform reached 79.6 million subscribers, slightly below expectations, with modest growth offset by the loss of more than one million users following the end of an overseas distribution agreement.

The company recently increased subscription prices for Paramount+ and is preparing to align its Pluto TV service with the same technology platform, a move aimed at improving efficiency and advertising integration.

Performance across traditional television remained under pressure. Revenue from the TV division fell 6 per cent to about A$5.6 billion, reflecting softer advertising conditions and declining affiliate income. In contrast, the film segment delivered growth of 11 per cent, reaching approximately A$2 billion, supported by strong box office returns from Scream 7.

The evolving media environment is also playing out in markets such as Australia, where Network 10, owned by Paramount, continues to face challenges. The broadcaster holds roughly 14 to 18 per cent of total television share in 2026, with stronger performance among younger viewers but trailing competitors in overall audience numbers. This reflects a broader shift towards streaming and on-demand content, areas where Paramount is continuing to invest heavily.

As the company looks to integrate Warner Bros. Discovery and strengthen its streaming footprint, its ability to balance traditional broadcasting with digital growth will remain central to its strategy.