Warner Bros. Discovery announced record-breaking growth in its streaming business during second-quarter earnings, with the segment exceeding $3 billion in revenue and achieving a 10% increase compared to the prior year. The company generated more than $500 million in adjusted earnings before interest, taxes, depreciation and amortization from streaming operations. CEO David Zaslav attributed the gains to the company’s commitment to creative excellence and quality storytelling, particularly highlighting the global reach and cultural impact of HBO programming across HBO Max.
The streaming growth was driven by expansion into new markets and a robust content portfolio featuring shows such as “Euphoria,” “House of the Dragon,” and “The Pitt.” Looking ahead, the company projected strength in the latter half of the year with forthcoming releases including “Harry Potter” and “Gilded Age.” Advertising revenue from the streaming business increased 9%, primarily driven by growth in global ad-lite subscribers. However, the company noted that the absence of NBA games from its streaming service following a new media rights package negatively impacted year-over-year growth by 16%, excluding foreign currency effects.
The company’s overall second-quarter revenue totaled $8.72 billion, representing an 11% decline from the prior year 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, in the year-ago quarter. The company attributed the substantial decline in net income to pre-acquisition adjustments to intangible asset values and restructuring expenses. Adjusted EBITDA for the quarter stood at $1.88 billion versus $1.95 billion in the prior year.
Zaslav noted that CNN linear viewership increased 24% year-over-year, with minutes spent across all CNN platforms rising 19%. The earnings report comes as the company continues to advance its proposed merger with Paramount under Paramount CEO David Ellison’s leadership. Under the proposed combination, HBO Max and Paramount+ would be consolidated into a single streaming service. The merger has faced challenges from state attorneys general and is scheduled for trial in March. Combined, the two services would serve approximately 200 million subscribers, according to statements made by company leadership.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI