Warner Bros Discovery’s (WBD) global subscribers increased by 5.3m to 122.3m as CEO David Zaslav said the ongoing international rollout maintained course to cross 150m members by the end of 2026.
Streaming was a highlight in an otherwise mixed first quarter that brought expected drops at the studios and television businesses.
Overall streaming revenues climbed 8% to $2.7bn and adjusted EBITDA was $339m. Distribution revenues increased 7% to $2.3bn, driven by a 23% increase in subscribers following the ongoing global rollout of Max and new US distribution deals. The service launched in Australia on March 31 and will debut in the UK in 2026.
Streaming advertising increased 35% to $237m, which the company said was attributable to growth in ad-lite subscribers.
Talking to analysts, Zaslav indicated a shift in thinking on Max towards an emphasis on quality rather than quantity. “The idea is it’s not how much, it’s how good is something we’ve identified. We’re not going to flood the zone,” he said. Two hits from Q1 were Season 3 of The White Lotus and new medical drama The Pitt.
The studios division revenue fell 18% to $2.3bn, due in part to strong Q4 business from Dune: Part Two and Godzilla v Kong, and a shaky start to the year that briefly put the futures of motion group co-heads Mike De Luca and Pam Abdy in the crosshairs.
The pressure was alleviated by the stellar performance of A Minecraft Movie, which crossed $400m at the North American box office on Wednesday and stands at more than $876m worldwide, and Sinners, which stands at $190m in North America and more than $244m worldwide. The performance of both titles will be reflected in Q2 earnings.
James Gunn’s DC Studios tentpole Superman opens on July 11, Craig Gillespie is wrapping production on Supergirl, and the studio is “deep” in production on the series Lanterns.
Overall WBD revenues fell 10% against the year-ago period to $8.9bn, while advertising revenue fell 8% to $1.9bn. Net income losses improved from $966m to $453m, and content revenues fell by 27% to $1.87bn
Global linear networks revenues fell 7% to $4.8bn. Zaslav addressed the company’s restructure into Global Linear Networks and Streaming & Studios, which he indicated opened the door to spinning off the company’s television assets.
The stock price increased by 5% after the company reported its financials.
No comments yet