Warner Bros. Discovery disclosed strong performance in its streaming operations during second-quarter earnings on Thursday, with the segment generating more than $3 billion in revenue and representing a 10% increase compared to the prior year. The company reported adjusted earnings before interest, taxes, depreciation and amortization of more than $500 million from streaming, with HBO Max serving as the primary driver of growth.
Executive leadership attributed the streaming gains to the quality of content offerings and expansion into new markets. Notable programs including “Euphoria,” “House of the Dragon” and “The Pitt” contributed to subscriber engagement, while the company projected continued momentum in the second half of the year with the addition of titles such as “Harry Potter” and “Gilded Age.” CEO David Zaslav highlighted the transformation of HBO Max into a globally valuable streaming service, emphasizing the importance of creative excellence and quality storytelling in driving financial results.
Advertising revenue within the streaming segment increased 9%, primarily reflecting growth in global ad-lite subscribers. However, the loss of NBA media rights for the streaming service negatively impacted year-over-year advertising growth by 16 percentage points when excluding currency fluctuations.
Overall company revenue for the quarter reached $8.72 billion, representing an 11% decline from the prior year and falling short of analyst expectations of $9.29 billion. Net income attributable to the company totaled $149 million, or 6 cents per share, a significant decrease from $1.58 billion or 63 cents per share in the year-ago period, with the company attributing the decline to pre-acquisition asset adjustments and restructuring expenses. Adjusted EBITDA declined to $1.88 billion from $1.95 billion year-over-year.
The earnings report comes as the company continues to pursue its combination with Paramount through Skydance, a deal that has drawn regulatory scrutiny from state attorneys general and is scheduled for trial in March. Paramount CEO David Ellison has indicated plans to merge the two streaming services into a combined offering with approximately 200 million subscribers, though leadership has stated the HBO brand would be maintained separately.
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