WarnerMedia Q2 Revenues Drop 23 Percent

Second-quarter revenues at WarnerMedia fell by 22.9 percent to $6.8 billion, with declines across all the company’s divisions.

At Turner, revenues fell by 12.4 percent to $3 billion due to a decrease in advertising and subscription revenues, partially offset by an increase in content and other revenues. Subs revenues were down as a result of lower regional sports network revenues and international revenues that were impacted by unfavorable foreign exchange rates. Ad revenues fell largely due to the suspension of the NBA season.

HBO revenues slipped 5.2 percent to $1.6 billion, as subs revenues declined due to lower domestic linear subscribers, partially offset by growth in digital subscribers and international revenue, and content and other revenues fell due to lower content licensing.

Warner Bros. revenues were down just 3.9 percent to $3.3 billion, as theatrical revenues dropped but television product revenues rose due to higher sales to HBO Max, partially offset by lower third-party TV production revenues due to the COVID-19 production hiatus.

AT&T says COVID-19 had an $890 million impact on WarnerMedia’s content and other revenues and a $620 million impact on ad revenues.

In the Q2 results, AT&T revealed that HBO and HBO Max combined have 36 million subs in the U.S.

Meanwhile, at AT&T’s Entertainment group, which consists of its pay-TV and broadband services, revenues were down 11.4 percent to $10.1 billion with declines in premium TV and OTT subscribers. Premium TV shed 886,000 customers and AT&T Now lost 68,000.

Overall revenues at AT&T in Q2 were $41 billion.