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Warner Bros. streaming gains helps offset decline in TV networks

Media giant showed improvement at its direct-to-consumer unit
Published on February 27, 2025.
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Warner Bros. added 6.4 million Max subscribers during the quarter.

Credit: Bloomberg

Warner Bros. Discovery Inc., the parent of CNN and HBO, reported fourth-quarter sales that missed analysts’ estimates, dragged down by its traditional TV business, though its streaming service is winning new subscribers.

Overall revenue slipped 2% to 10ドル billion in the three months ended Dec. 31, missing analysts’ forecasts for 10ドル.22 billion. Adjusted earnings before interest, taxes, depreciation and amortization were 2ドル.7 billion, the New York-based company said in a statement on Thursday. That surpassed Wall Street’s estimates for 2ドル.66 billion.

The media giant showed improvement at its direct-to-consumer unit, which includes its Max streaming service, and reported adjusted Ebitda of 409ドル million, compared to analysts’ expectations of 273ドル million. Warner Bros. also added 6.4 million Max subscribers during the quarter, gaining momentum after launching service in Latin America and Europe last year. Advertising on the platform rose.

In a letter to subscribers, management set a goal for 150 million streaming subscribers in 2026. The company reported 116.9 million at the end of the fourth quarter.

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For its traditional television networks, Warner Bros. saw a 5% decline in revenue to 4ドル.77 billion. The company took a 9ドル.1 billion impairment charge for writing down the value of its TV networks during the second quarter.

Its movie and TV studio division saw profits rise to 950ドル million, despite a major flop with Joker: Folie à Deux during the quarter.

Warner Bros. shut down three of its video game studios and end work on a much-anticipated Wonder Woman title in an effort to increase profitability of its interactive entertainment business.

The company said in December that it was reorganizing its business overall into two divisions: one focused on streaming and studios and the other on cable-TV networks. The move could help the company engage in better deal-making in an environment where other legacy media giants are looking to merge or partner to cut costs.

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