pam abdy

Warner Bros. said Wednesday it will renew the contract for studio heads Mike De Luca and Pam Abdy after the two orchestrated a string of back-to-back hits at the box office.

The news is a notable reversal of fortune for the co-chairs and co-chief executives of Warner Bros. Motion Picture Group.

Only six months ago, the pair was on thin ice after a series of underperforming films, including Bong Joon Ho’s sci-fi thriller “Mickey 17” and the Robert De Niro-led mob movie “The Alto Knights.”

But the studio’s prospects dramatically changed in April with the release of “A Minecraft Movie,” which hauled in nearly $958 million worldwide. Shortly after, Ryan Coogler’s “Sinners” became a lasting hit at the box office, followed by “Final Destination Bloodlines,” “F1 The Movie” (which Warner Bros. distributed), James Gunn’s “Superman,” horror flick “Weapons” and the final installment of “The Conjuring.”

The studio recently released the Paul Thomas Anderson film “One Battle After Another,” which stars Leonardo DiCaprio, that is generating awards buzz and has so far grossed $106 million in global ticket sales.

In a memo to staff Wednesday, Warner Bros. Discovery CEO David Zaslav credited Abdy and De Luca for the improved performance at the box office.

He touted the studio’s “balanced” slate with big blockbusters, films based on established intellectual property, horror movies and original works.

“Mike and Pam’s unwavering leadership and commitment to this business has been critical to our success this year,” he wrote. “We have a lot to be grateful for and much to celebrate including several of this year’s best reviewed movies, many of which have pierced the culture zeitgeist in profound ways while also delighting moviegoers around the world.”

Warner Bros. recently surpassed $4 billion at the global box office, the first time it has done so since 2019 and the first studio to reach this mark this year.

“We have the privilege to do this job because of the support and trust [Zaslav] has put in us, and in all of you,” De Luca and Abdy said in an internal note to employees. “We could not be more excited to be leading this team as we introduce an exciting slate of films in the coming years and continue making every film experience an event worthy of the Warner Bros. shield.”

Leonardo DiCaprio can still draw audiences to movie theaters.

His latest film, “One Battle After Another,” landed in the top spot at the box office this weekend, hauling in $22.4 million in the U.S. and Canada. Globally, the film made $48.5 million in its opening weekend. Industry analyst estimates had pegged the film’s debut at $20 million to $25 million, though some had predicted $30 million or more. Studio sources expected the film to bring in $20 million in its domestic opening.

Written and directed by auteur filmmaker Paul Thomas Anderson, “One Battle After Another” tells the story of a one-time revolutionary, played by DiCaprio, who must band together with old friends and community members to rescue his daughter from a former enemy. The film, which is loosely based on a Thomas Pynchon novel, also stars Sean Penn, Teyana Taylor, Benicio Del Toro and Regina Hall. Its budget was $130 million.

“One Battle After Another” had strong interest from Hollywood cinephiles, but there were questions about whether it would connect with more casual moviegoers, particularly since early marketing was more ambiguous about its genre. In addition, adult dramas have not performed at the box office as they did before the pandemic, as older audiences have been slower to return to theaters. Fans of DiCaprio, who may have followed his career since his turn in 1997’s “Titanic,” fall into that group.

But the film notched a solid 98% approval rating on aggregator Rotten Tomatoes and has benefited from buzz about its awards potential.

“One Battle After Another” marks the latest win for Warner Bros. The studio has had a string of success at the theaters starting with April’s “A Minecraft Movie,” which has grossed a total of $957 million. That streak continued with Ryan Coogler’s “Sinners,” James Gunn’s “Superman,” Zach Cregger’s “Weapons,” and the latest installments of franchises like “The Conjuring” and “Final Destination.” It’s been a remarkable turnaround for the studio and its film chiefs Mike De Luca and Pam Abdy, who earlier this year were reportedly on the hot seat for under-performing films.

At that time, “One Battle After Another” was seen as an especially risky bet for De Luca and Abdy, but the success of the rest of the year’s lineup has reduced the pressure on this film, said Shawn Robbins, director of movie analytics at Fandango and founder of site Box Office Theory.

“They’re in an envious position right now because they don’t need this movie to over-perform,” he said. “‘One Battle After Another’ is a little bit of a cherry on top.”

“Gabby’s Dollhouse” came in second place at the box office this weekend, grossing $13.5 million. “Demon Slayer,” “The Conjuring: Last Rites” and “The Strangers: Chapter 2” rounded out the top five.