Despite revenue slipping by 6% to US$7.19 billion, it’s been a solid Q1 overall for Paramount Global as it inches closer to the finish line of its long-awaited merger with Skydance Media.

The company’s fiscal year has kicked off with Q1 net profits of US$152 million, up drastically from a US$554-million net loss this time last year (largely due to write-downs and restructuring).

Quarterly results were especially promising in the DTC segment, with Paramount+ adding 1.5 million new subscribers to hit a total base of 79 million. Global viewing hours were also up by 31% for the flagship streamer and Pluto TV combined.

These gains helped drive a 9% bounceback in overall streaming revenue (US$2 billion), and Paramount’s streaming deficit has shrunk by 62% to US$109 million (compared to US$286 million in Q1 2024), with domestic profitability projected for sometime this year.

Revenue from the TV networks business dropped by 13% this quarter to US$4.5 billion, but Paramount noted that PAW Patrol and SpongeBob SquarePants are holding strong as its top-watched shows with the preschool and six to 11 demos, respectively. In films, earnings rose by 4% to US$627 million, yielding a profit of US$20 million—primarily thanks to Sonic the Hedgehog 3 (pictured), which did US$492 million in ticket sales and hit Paramount+ on February 18.

Paramount also noted that it’s expecting the Skydance transaction to finalize before the end of June, as previously outlined. This deal closure has been quite drawn out as Paramount has had to wait on approval from the Federal Communications Commission, while also navigating a lawsuit by US President Donald Trump against CBS and 60 Minutes.