Warner Bros. Discovery Posts Q2 Loss

In its first financial results as a merged company, Warner Bros. Discovery reported a second-quarter net loss of $3.4 billion on revenues of $9.8 billion.

The company attributed the Q2 loss to amortization and integration costs.

“We’ve had a busy, productive four months since launching Warner Bros. Discovery and have more conviction than ever in the massive opportunity ahead,” said David Zaslav, president and CEO. “We have the most powerful creative engine and bouquet of owned content in the world, as highlighted by our industry-leading 193 Emmy nominations, and we intend to maximize the value of that content through a broad distribution model that includes theatrical, streaming, linear cable, free-to-air, gaming, consumer products and experiences and more, everywhere in the world. We’re confident we’re on the right path to meet our strategic goals and really excel, both creatively and financially, and couldn’t be more excited about the future of our company.”

In the studios segment, total revenues were $2.8 billion, including content revenues of $2.6 billion. Network revenues were $5.7 billion, with $2.6 billion in ad revenues, driven by sports; $2.8 billion in distribution revenues; and $220 million in content revenues. Direct-to-consumer revenues were $2.2 billion, with a total portfolio base of 92.1 million customers, 53 million in the U.S. and Canada and 39.1 million internationally.