Warner Bros. Discovery reported strong performance in its streaming business during the second quarter, with its streaming segment generating more than $3 billion in revenue and achieving a 10% year-over-year increase. The segment also produced over $500 million in adjusted earnings before interest, taxes, depreciation and amortization. Chief Executive David Zaslav attributed the results to the company’s commitment to creative excellence and quality storytelling, noting that HBO Max’s global expansion and diverse content offerings were driving financial progress.
The company cited the breadth and cultural influence of HBO programming as a key factor in the streaming segment’s performance. Growth was supported by expansion into new markets and a slate of content that includes shows such as “Euphoria” and “House of the Dragon.” Looking ahead, Warner Bros. said the remainder of the year was expected to be strong with the addition of programming like “Harry Potter” and “Gilded Age.”
Advertising revenue for the streaming business increased 9%, primarily from growth in global ad-lite subscribers. However, the company noted that the absence of NBA games on the streaming service following a new media rights package negatively impacted year-over-year growth by 16%, excluding the effect of foreign currency fluctuations. The earnings report comes as the company faces ongoing scrutiny regarding its proposed combination with Paramount, a deal that is scheduled to go to trial in March following challenges from state attorneys general.
Overall company revenue for the quarter reached $8.72 billion, down 11% from the prior-year period and falling short of Wall Street expectations of $9.29 billion. Net income attributable to the company was $149 million, or 6 cents per share, compared with $1.58 billion, or 63 cents per share, a year earlier, with the decrease attributed to intangible asset adjustments and restructuring expenses. Adjusted EBITDA for the quarter was $1.88 billion, compared with $1.95 billion in the same period a year prior.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI