WBD Gains Subscribers and Projects Future Growth

Warner Bros. Discovery (WBD) has reported a significant increase in its global streaming subscribers. In the fourth quarter, the company added 6.4 million new subscribers, bringing its total to 116.9 million.

Streaming Revenue Growth

The revenue from WBD's streaming services, mainly driven by their flagship service Max, reached $2.65 billion in the fourth quarter. This figure marks a 5% increase compared to $2.53 billion reported in the same quarter the previous year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the streaming segment totaled $409 million. This is a remarkable turnaround from an adjusted EBITDA loss of $55 million in the fourth quarter of 2023.

Future Projections and Global Expansion Plans

In a recent letter to shareholders, the company expressed optimistic forecasts regarding its streaming business. WBD expects adjusted EBITDA to reach $1.3 billion for the year, which is roughly double the $677 million reported for 2024. The company also outlines a clear plan to attain 150 million global subscribers by the end of 2026.

Max is set to expand into new markets, including a launch on the television service Sky in the United Kingdom and Ireland by the second quarter of 2026. Additionally, it plans to debut in Germany and Italy during the first quarter of that year.

Content Strategy Updates

Recently, WBD announced that Max will continue to offer its B/R Sports and CNN content at no extra charge for subscribers on standard and premium tiers. Initially, there were plans to introduce an additional charge for sports content.

However, starting from March 30, both of these offerings will no longer be available in the basic, ad-supported tier.

Overall Financial Performance

Despite the success in streaming, WBD's overall revenue in the fourth quarter fell by 2% to $10.03 billion, down from $10.28 billion in the same quarter of 2023. For the entire year, the company reported a revenue of $39.32 billion, a 5% decrease from $41.32 billion in 2023.

WBD also recorded a net loss of $494 million for the fourth quarter, which translates to a loss of 20 cents per share, compared to a net loss of $400 million or 16 cents per share in the fourth quarter of 2023.

Challenges Ahead

The revenue from WBD's TV networks decreased to $4.77 billion, down from $5.04 billion in the previous year. The company had previously reported significant losses in its networks business, amounting to $9.1 billion. Furthermore, WBD anticipates ongoing declines in cable subscribers and notes that the advertising market for U.S. linear television is shrinking quicker than anticipated.

In the studios sector, fourth-quarter revenue increased to $3.66 billion, a 15% rise from $3.17 billion in the same quarter of 2023.

This story is developing. Please check back for updates.

Warner, Discovery, Max