Paramount grows Q4 revenue 2%, claims WBD merger would accelerate its growth

Billy Bob Thornton in Paramount+ oil business drama Landman

Paramount Skydance’s revenue increased 2% to US$8.15bn in the fourth quarter (Q4) as the David Ellison-led outfit continues with its attempt to wrest Warner Bros Discovery (WBD) away from Netflix.

The company posted mixed Q4 results as growth in the streaming division was offset by continued declines in cable television, though it reiterated that it is little more than six months since Ellison took over from previous controlling shareholder Shari Redstone.

In the direct-to-consumer (D2C) division, revenue climbed 10% to US$2.21bn. The increase was driven by Paramount+, which saw revenue grow 17% to US$1.84bn. The service, which is home to series including Landman and MobLand, added 1.1 million subscribers to reach 78.9 million globally.

Pluto TV’s revenue declined by 16%, which it attributed to “ongoing monetisation headwinds,” but it said the AVoD platform has seen “healthy growth in time spent.”

In its TV media segment, which primarily comprises its linear cable networks, revenue fell 5% to US$4.71bn, driven by declines in advertising and affiliate revenues. In its film division, revenue was up 16% at US$1.26bn.

Overall, the company posted an operating loss of US$339m while its operating income before depreciation and amortisation was US$612m.

Paramount’s pursuit of WBD continues to be the talk of the film and TV world, after WBD’s acknowledgement that Paramount’s offer could lead to a better deal than Netflix’s.

At the top of the Q4 earnings call, Ellison said he and his leadership team would not be addressing the ongoing discussions. However, in its letter to shareholders, it did refer to WBD as a potential “accelerant” to Paramount’s long-term plans.

“While we are confident in our standalone strategy and growth trajectory for Paramount, we view WBD as an accelerant to achieving these goals more quickly,” said Ellison.

New York-headquartered WBD will report its own earnings on Thursday morning.