Warner Bros. Discovery (WBD) reported its first-quarter 2025 financial results, revealing a mixed performance across its business segments. While the company experienced a decline in overall revenue, its streaming division demonstrated significant growth, highlighting the shifting dynamics within the media industry.
The company posted a net loss of $453 million, or 18 cents per share, for the quarter ending March 31, 2025. This loss was narrower than the $966 million loss reported in the same period the previous year. Total revenue decreased by 10% year-over-year to $8.98 billion, falling short of analysts' expectations of $9.6 billion. The decline was primarily attributed to underperformance in the studio and linear television segments.
The studio division faced an 18% drop in revenue, totaling $2.31 billion. This downturn was largely due to the lackluster performance of key releases, such as Bong Joon Ho's "Mickey 17," which failed to replicate the success of previous hits like "Dune: Part Two." Additionally, the absence of major video game launches contributed to a 27% decline in content revenue.
The Global Linear Networks segment, encompassing channels like CNN and Discovery Channel, saw a 7% revenue decrease to $4.77 billion. This was influenced by a 12% drop in advertising revenue, reflecting ongoing challenges in the traditional television landscape amid cord-cutting trends.
In contrast, the streaming division emerged as a bright spot. WBD added 5.3 million streaming subscribers during the quarter, bringing the total to 122.3 million globally. Streaming revenue increased by 8% year-over-year to $2.66 billion. The company reported a streaming Adjusted EBITDA of $339 million, positioning it on track to achieve its target of $1.3 billion for the year.
CEO David Zaslav emphasized the company’s focus on high-quality content, stating, “It’s not how much, it’s how good.” He highlighted the success of series like "The White Lotus" Season 3 and "The Pitt" as drivers of subscriber growth. Zaslav also noted the potential of upcoming releases, including "Sinners" and "A Minecraft Movie," which have already shown strong box office performance.
Looking ahead, WBD plans to continue expanding its streaming services into new international markets, aiming to surpass 150 million global subscribers by the end of 2026. The company is also preparing for the release of the highly anticipated "Superman" film in July, expected to bolster both theatrical and streaming engagement.
Despite current challenges in traditional media segments, Warner Bros. Discovery’s strategic investments in streaming and content quality position it for potential growth in the evolving entertainment landscape.
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