Warner Bros. Discovery has changed a profit and experienced a 1% income growth during its second quarter of 2025, mainly motivated by its studios and streaming activities.
The streaming company has seen income increase by 9% to $ 2.8 billion and made a profit of $ 293 million, against a loss of $ 107 million a year ago, while HBO Max continued its international expansion. The company added 3.4 million subscribers for a total of 125.7 million worldwide, including 57.8 million national information and 67.9 million internationals.
Meanwhile, studios increased by 55% to 3.8 billion dollars, while its profits reached $ 863 million, against a profit of $ 210 million a year ago, due to the high performance at the box office of “a minecraft film”, “sinners” and the “final destination: the blood line” 38% of theatrical income. Total incomes in the content of the segment increased by 61% to 3.6 billion, including an increase of 115% of television income led by higher intersocated license income due to the renewal calendar.
But the global activity of linear networks has weighed on results with revenues of 9% to $ 4.8 billion and profits from 25% to 1.5 billion due to the cord cup, the absence of the NCAA March Madness Final Four and the championship and the schedule of third -party license agreements. Segment distribution income dropped by 7% to $ 2.5 billion due to a 9% drop in national public television subscribers, while advertising revenues dropped 12% to $ 1.95 billion, compared to a drop in domestic public by 23% and content income fell 4% to $ 287 million.
Here are the quarterly results:
Net income: $ 1.58 billion, against a loss of $ 9.99 billion a year ago. This included 1.7 billion dollars of “damping linked to the before tax acquisition of intangible assets, the justice of the fair value of the content and restructuring expenses”, as well as a “gain before taxes of $ 3 billion on the extinction of the debt”.
Profit by action: 63 cents per diluted part, compared to a loss of 23 cents an expected part by the analysts interviewed by Yahoo Finance.
Income: $ 9.81 billion, from one year by year to year, compared to $ 9.83 billion expected by analysts interviewed by Yahoo Finance.
Subscribed streaming: Adding 3.4 million subscribers for a total of 125.7 million worldwide.
WBD targets at least 150 million streaming subscribers by the end of 2026 and predicts that the streaming segment will have a profit of approximately $ 1.3 billion in 2025. It also set a long -term objective of reaching at least $ 3 billion in Ebitda adjusted in its studios division.
The latest results arise as WBD is preparing to divide into two companies in mid-2016: Warner Bros. and Global Discovery.
The first, which will be led by the CEO of WBD, David Zaslav, will house Warner Bros. Television Group, Warner Bros. Motion Picture Group, DC Studios, HBO and HBO Max, Warner Bros. Games, Tours, Retail and Experiences, as well as studio production facilities in Burbank and Leavesden.
The latter, which will be led by CFO Gunnar Wiedenfels, will include CNN, TNT Sports in the United States, Discovery, the best free channels through Europe, Discovery + and Bleacher Report (B / R). Discovery Global will keep a 20% stake in Warner Bros. To help the business unwind and should take the majority of WBD debt.
As part of the split, the company has completed a tender offer and has reimbursed a 1.5 billion dollars loan scheduled for 2026 which was funded by a bridge facility of $ 17 billion. This led to a reduction of $ 2.2 billion in the raw debt. They also reimbursed $ 500 million in debts, resulting in a total reduction of $ 2.7 billion in the quarter.
WBD ended the quarter with 4.9 billion dollars in cash and $ 35.6 billion in raw debt.
More to come …
