while the Warner Bros. Discovery deal is approaching
The media company returned to profit in the first three months of the year, reversing a loss of $573 million from the previous period. Revenue ended at $7.347 billion.
Paramount Global has returned to profitability. The American media company ended the first quarter of fiscal 2026 with a profit of $168 million. This is a far cry from the $573 million loss recorded in the last quarter of the previous year.
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This happened despite revenue being cut by nearly 10 percent – from $8.148 billion in the last quarter of 2025 to $7.347 billion between January and March 2026.
“Costs must have gone down”
The costs have probably decreased, although the accounts do not provide further details. Operating income reached $616 million, compared to a loss of $339 million in the prior period.
Measured in segments:
- Direct-to-consumer (DTC) generated $2.398 billion – an increase of 11 percent from the same period last year.
- The studio division reported $1.283 billion – up 11 percent.
- TV Media reached $3.666 billion – down 6 percent.
A busy and productive quarter
The company explains that the year has started busy and productive, and that the momentum in the DTC, studio and TV segments has yielded solid results for the first quarter.
Paramount’s management says they are “pleased with the development of our business, as we continue to invest in key growth areas, drive greater efficiencies across the company, and position the business for long-term success.”
Expects turnover of up to NOK 30 billion in 2026
By the end of the second quarter, Paramount expects revenue between $6.75 billion and $6.95 billion. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) can be between USD 900 million and USD 1 billion.
For the full year 2026, total revenue could reach around $30 billion, with an adjusted EBITDA of $3.8 billion.
Merger with Warner Bros. Discovery – concern about ownership concentration
At the end of April, the board of shareholders of Warner Bros. Discovery approved its merger with Paramount for a final amount of $111 billion.
However, the merger between two of the world’s largest media companies has caused concern in the industry. Critics point to increased concentration of ownership and fear that fewer players in the media market could reduce diversity in content, push down wages for creative employees and weaken competition in the streaming market.
“When two giants like Warner Bros. Discovery and Paramount merge, they are left with enormous market shares. There is reason to ask whether this will be at the expense of independent actors, innovation and, not least, consumers,” says a media analyst.
Spokespeople for the companies have stated that the merger will create “economies of scale and better competitiveness vis-à-vis the tech giants”, but concerns about an increasingly concentrated media industry remain.
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