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Warner Bros. Discovery swung to a revenue and noticed income progress of 1% throughout its second quarter of 2025, pushed primarily by its studios and streaming companies.
The streaming enterprise noticed income develop 9% to $2.8 billion and eked out a revenue of $293 million, in comparison with a lack of $107 million a 12 months in the past, as HBO Max continued its worldwide growth.
In the meantime, studios grew income 55% to $3.8 billion, whereas its income got here in at $863 million, up from a revenue of $210 million a 12 months in the past, because of the robust field workplace efficiency of “A Minecraft Film,” “Sinners,” and “Closing Vacation spot: Bloodlines.”
However the international linear networks enterprise weighed on the outcomes with income falling 9% to $4.8 billion and income falling 25% to 1.5 billion resulting from cord-cutting, the absence of the NCAA March Insanity Closing 4 and Championship and the timing of third-party licensing offers. The section’s distribution income fell 7% to $2.5 billion resulting from a 9% decline in home pay TV subscribers, whereas advert income fell 12% to $1.95 billion from a home viewers decline of 23% and content material income dipped 4% to $287 million.
Listed below are the quarterly outcomes:
Web revenue: $1.58 billion, in comparison with a lack of $9.99 billion a 12 months in the past. This included $1.7 billion of “pre-tax acquisition associated amortization of intangibles, content material truthful worth step-up, and restructuring bills,” in addition to a $3 billion “pre-tax acquire on the extinguishment of debt.”
Earnings Per Share: 63 cents per diluted share, in comparison with a lack of 23 cents a share anticipated by analysts surveyed by Yahoo Finance.
Revenues: $9.81 billion, flat 12 months over 12 months, in comparison with $9.83 billion anticipated by analysts surveyed by Yahoo Finance.
Streaming subscribers: Added 3.4 million subscribers for a complete of 125.7 million globally.
WBD is concentrating on at the least 150 million streaming subscribers by the top of 2026 and anticipates the streaming section will ship a revenue of roughly $1.3 billion in 2025. It additionally has set a long-term objective to achieve at the least $3 billion of adjusted EBITDA in its studios division.
The newest outcomes come as WBD is gearing as much as break up into two firms in mid-2026: Warner Bros. and Discovery World.
The previous, which might be led by WBD CEO David Zaslav, will home Warner Bros. Tv Group, Warner Bros. Movement Image Group, DC Studios, HBO and HBO Max, Warner Bros. Video games, Excursions, Retail and Experiences, in addition to studio manufacturing amenities in Burbank and Leavesden.
The latter, which might be led by CFO Gunnar Wiedenfels, will embody CNN, TNT Sports activities within the U.S., Discovery, high free-to-air channels throughout Europe, Discovery+ and Bleacher Report (B/R). Discovery World will retain a 20% stake in Warner Bros. to assist the corporate deleverage and is anticipated to take the vast majority of WBD’s debt.
In reference to the break up, the corporate accomplished a young provide and repaid a $1.5 billion time period mortgage due in 2026 that was financed by a $17 billion bridge facility. That resulted in a $2.2 billion discount in gross debt. Additionally they repaid $500 million in debt, leading to a complete discount of $2.7 billion within the quarter.
WBD ended the quarter with $4.9 billion of money readily available and $35.6 billion of gross debt.
Extra to come back…
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