Paramount reported year-over-year growth in both revenue and adjusted EBITDA as CEO David Ellison and his team seek to remake the company they acquired late last summer. At the same time, the company also says that it is “making great progress” on its deal to acquire Warner Bros. Discovery, with a late Q3 target close still on track.

Paramount reported its Q1 earnings Monday, with revenue of $7.35 billion, up 2 percent year-over-year, operating income of $616 million, an operating margin of 8.4 percent, and adjusted EBITDA of $1.16 billion, up 59 percent year-over-year.

Paramount+ was the big driver, with 17 percent growth year-over-year and subscribers growing by 700,000 even after accounting for a one million hit from the loss of a hard bundle. Overall DTC revenue was $2.4 billion.

Paramount, of course, is reporting earnings in a moment of transition.

Even though Ellison and his team only took over Paramount less than a year ago, they have a deal to acquire Warner Bros. Discovery and are telling the street that they expect to close this year, effectively turning them into an entertainment behemoth.

Of course, customary rules mean that Paramount executives are limited in engaging with WBD about future plans, so Paramount needs to continue with its strategy, even as it plans separately for a future combined with WBD.

“Zooming out to 30,000 feet. We really view our pending acquisition of Warner Bros. Discovery as a powerful accelerant to our strategy,” Ellison said on the call, reiterating his plan to release 30 films per year in theaters. “It expands reach and enhances our ability to create the world’s most compelling stories and experiences, and it positions us really well to build a next generation media and technology company.”

Ellison also said that the company will also be focusing more of its efforts on premium, high-quality content

“A core thematic for us has always been quality is the best business plan, you know, really making sure you aim high and you don’t stop working until you get there,” he said. “And in the competitive landscape that we find ourselves in today, we think that’s essential from a creative standpoint. That’s a philosophy that we’re going to continue to deploy across our film and television studios, as well as our streaming services.”

He also reiterated plans to invest more in technology, including an overhaul of Pluto TV planned for later this year that will accompany a renewed push for that free streaming platform.