Warner Bros. Discovery announced strong financial performance in its streaming division during second-quarter earnings results released this week. The streaming segment, led by HBO Max, generated revenue exceeding $3 billion, representing a 10% year-over-year increase, alongside more than $500 million in adjusted earnings before interest, taxes, depreciation and amortization.
Company leadership attributed the growth to content performance and expansion into new markets. HBO Max’s programming portfolio, which includes shows such as “Euphoria,” “House of the Dragon” and “The Pitt,” contributed significantly to subscriber gains. The company projected continued momentum in the second half of the year with planned releases including “Harry Potter” and “Gilded Age.” Advertising revenue within the streaming business increased 9%, primarily driven by growth in global ad-lite subscribers, though losses from the termination of an NBA media rights package reduced overall growth by 16%.
The earnings report comes as Warner Bros. Discovery pursues a combination with Paramount under Skydance’s ownership. Paramount CEO David Ellison outlined plans to merge HBO Max and Paramount+ into a unified streaming platform, which would create a service with approximately 200 million global subscribers. The proposed deal has faced legal challenges from state attorneys general and is scheduled for trial in March. Industry critics have raised competitive concerns, though the companies argue the merger is necessary to achieve competitive scale.
Overall company revenue for the quarter reached $8.72 billion, declining 11% from the comparable prior-year period and falling short of Wall Street expectations. Net income attributable to the company declined substantially to $149 million from $1.58 billion in the prior year, with the decrease attributed to pre-acquisition adjustments to intangible asset valuations and restructuring expenses. Adjusted EBITDA for the quarter was $1.88 billion compared with $1.95 billion in the year-prior period.
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